STAAR Surgical Company (STAA)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 488,692 | 418,818 | 345,778 | 257,416 | 207,523 |
| Total stockholders’ equity | US$ in thousands | 385,954 | 336,112 | 261,568 | 197,222 | 159,884 |
| Financial leverage ratio | 1.27 | 1.25 | 1.32 | 1.31 | 1.30 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $488,692K ÷ $385,954K
= 1.27
STAAR Surgical Company's financial leverage ratio has fluctuated over the past five years, ranging from 1.25 to 1.32. The ratio indicates that the company has been using debt as part of its capital structure, with a value above 1 suggesting that the company has more debt than equity in financing its operations. The increase in the financial leverage ratio from 1.25 in 2022 to 1.27 in 2023 may indicate a slight increase in the proportion of debt used to finance the company's assets.
The financial leverage ratio of STAAR Surgical Company in 2023 is 1.27, indicating that for every dollar of equity, the company has $1.27 in total assets. This implies that a relatively higher proportion of the company's assets are funded by debt compared to equity. It is essential for investors and stakeholders to monitor changes in the financial leverage ratio as it can impact the company's risk profile and financial stability.
Peer comparison
Dec 31, 2023