US Physicalrapy Inc (USPH)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 997,238 | 858,154 | 749,426 | 594,361 | 630,501 |
| Total stockholders’ equity | US$ in thousands | 476,194 | 315,793 | 295,606 | 276,160 | 240,257 |
| Financial leverage ratio | 2.09 | 2.72 | 2.54 | 2.15 | 2.62 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $997,238K ÷ $476,194K
= 2.09
The financial leverage ratio of U.S. Physical Therapy, Inc. has exhibited fluctuations over the last five years. The ratio decreased from 2.33 in 2019 to 2.15 in 2020, indicating a reduction in the company's reliance on debt to finance its operations during that period. However, from 2020 to 2021, there was an increase in the financial leverage ratio to 2.54, suggesting a higher level of debt usage to support the company's assets.
In 2022, the financial leverage ratio peaked at 2.72, reflecting a significant increase in debt relative to equity within the company's capital structure. This high ratio may indicate heightened financial risk and potential concerns about the company's ability to meet its debt obligations.
By the end of 2023, the financial leverage ratio had decreased to 2.09, showing a decline in the company's debt-to-equity ratio and potentially signaling a more conservative approach in managing leverage.
Overall, the fluctuations in the financial leverage ratio over the past five years suggest varying levels of debt utilization by U.S. Physical Therapy, Inc., highlighting the importance of monitoring changes in leverage to assess the company's financial health and risk profile.
Peer comparison
Dec 31, 2023