Select Medical Holdings (SEM)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 5,607,950 | 7,689,630 | 7,665,290 | 7,360,170 | 7,655,400 |
| Total stockholders’ equity | US$ in thousands | 1,681,360 | 1,288,300 | 1,317,530 | 1,325,900 | 1,060,480 |
| Financial leverage ratio | 3.34 | 5.97 | 5.82 | 5.55 | 7.22 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $5,607,950K ÷ $1,681,360K
= 3.34
The financial leverage ratio of Select Medical Holdings has exhibited a declining trend from 7.22 in December 31, 2020, to 5.55 by December 31, 2021, and further to 5.82 by December 31, 2022. However, there was a slight increase to 5.97 by December 31, 2023, before significantly dropping to 3.34 by December 31, 2024. This suggests that the company's reliance on debt to finance its operations has been decreasing over the years, potentially indicating improved financial stability and reduced risk associated with debt obligations. Further analysis of the company's capital structure and debt management practices would provide a more comprehensive understanding of its financial leverage position.
Peer comparison
Dec 31, 2024