United Therapeutics Corporation (UTHR)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 7,167,000 | 6,044,500 | 5,169,100 | 4,615,000 | 3,913,400 |
| Total stockholders’ equity | US$ in thousands | 5,984,800 | 4,796,700 | 3,958,900 | 3,395,200 | 2,780,400 |
| Financial leverage ratio | 1.20 | 1.26 | 1.31 | 1.36 | 1.41 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $7,167,000K ÷ $5,984,800K
= 1.20
The financial leverage ratio of United Therapeutics Corp has been declining over the past five years, indicating a trend towards lower reliance on debt to finance the company's operations and investments. A financial leverage ratio of 1.20 as of December 31, 2023, indicates that the company has $1.20 in total assets for every $1 in equity. This suggests that the company's level of debt relative to its equity has decreased compared to previous years.
The decreasing trend in the financial leverage ratio could imply that United Therapeutics Corp is becoming more financially stable and less risky, as it is relying less on debt financing. However, a lower financial leverage ratio may also indicate limited access to debt capital for potential growth opportunities or investments.
Overall, the declining financial leverage ratio of United Therapeutics Corp suggests a more conservative approach to capital structure management, potentially aiming for a stronger financial position and reduced financial risk in the long term.
Peer comparison
Dec 31, 2023