Teleflex Incorporated (TFX)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 7,097,910 | 7,532,550 | 6,928,060 | 6,871,720 | 7,152,560 |
| Total stockholders’ equity | US$ in thousands | 4,278,140 | 4,440,990 | 4,021,970 | 3,754,750 | 3,336,460 |
| Financial leverage ratio | 1.66 | 1.70 | 1.72 | 1.83 | 2.14 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $7,097,910K ÷ $4,278,140K
= 1.66
The financial leverage ratio of Teleflex Incorporated has shown a downward trend over the past five years, decreasing from 2.14 in December 31, 2020, to 1.66 by December 31, 2024. This indicates that the company has been progressively reducing its reliance on debt to finance its operations and investments. A lower financial leverage ratio implies a stronger financial position and greater stability, as the company has less debt relative to its equity. This may make Teleflex Incorporated less vulnerable to financial distress or economic downturns, as it has a lower risk of defaulting on its debt obligations. Overall, the decreasing trend in the financial leverage ratio suggests that Teleflex Incorporated has been successful in managing its debt levels and improving its financial resilience.
Peer comparison
Dec 31, 2024