Sotera Health Co (SHC)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Total assets | US$ in thousands | 3,130,420 | 3,117,700 | 2,789,500 |
| Total stockholders’ equity | US$ in thousands | 443,734 | 350,238 | 586,096 |
| Financial leverage ratio | 7.05 | 8.90 | 4.76 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,130,420K ÷ $443,734K
= 7.05
The financial leverage ratio of Sotera Health Co has exhibited fluctuations over the past five years, ranging from 4.76 in 2021 to 8.90 in 2022, with a notable decrease to 7.05 in 2023. This ratio provides insights into the company's capital structure and indicates the proportion of debt in relation to equity used to finance its operations and investments. A higher financial leverage ratio signifies higher financial risk due to increased reliance on debt financing, while a lower ratio may imply a more conservative capital structure. Sotera Health Co's decreasing trend in the financial leverage ratio from 2022 to 2023 suggests a potential decrease in financial risk and a shift towards a more balanced capital structure. Further analysis of the company's debt management and capital raising strategies would be necessary to evaluate the implications of these changes on its overall financial health and stability.
Peer comparison
Dec 31, 2023