Teleflex Incorporated (TFX)

Financial leverage ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total assets	US$ in thousands	7,532,550	6,928,060	6,871,720	7,152,560	6,309,820
Total stockholders’ equity	US$ in thousands	4,440,990	4,021,970	3,754,750	3,336,460	2,979,320
Financial leverage ratio		1.70	1.72	1.83	2.14	2.12

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $7,532,550K ÷ $4,440,990K
= 1.70

The financial leverage ratio of Teleflex Incorporated has shown a decreasing trend over the past five years. The ratio decreased from 2.12 in 2019 to 1.70 in 2023. This indicates that the company has been relying less on debt to finance its operations and investments in recent years. A lower financial leverage ratio can be seen as a positive sign as it suggests a lower level of financial risk and a stronger financial position. However, it is important to note that a very low financial leverage ratio may also indicate underutilization of debt to potentially enhance returns for shareholders. Overall, the decreasing trend in Teleflex's financial leverage ratio reflects a more conservative approach to capital structure management.