Veracyte Inc (VCYT)

Financial leverage ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Total assets US$ in thousands 1,300,040 1,114,910 1,156,420 1,187,820 457,163
Total stockholders’ equity US$ in thousands 1,175,970 1,044,100 1,075,200 1,096,510 421,232
Financial leverage ratio 1.11 1.07 1.08 1.08 1.09

December 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,300,040K ÷ $1,175,970K
= 1.11

The provided financial leverage ratios for Veracyte Inc. over the specified period reveal a relatively stable pattern in the company's use of debt relative to equity. At the end of December 2020, the leverage ratio was 1.09, indicating that the company's total assets funded slightly more than half through liabilities or debt. This ratio experienced a slight decline in subsequent years, measuring 1.08 at the close of December 2021 and remaining at the same level through December 2022. The stability persisted into 2023, with the leverage ratio marginally decreasing to 1.07, suggesting a very slight reduction in the company's reliance on debt relative to equity. By the end of December 2024, the ratio increased modestly to 1.11, representing a minimal uptick in financial leverage.

Overall, these figures demonstrate that Veracyte Inc. maintained a consistent and moderate level of financial leverage throughout the analyzed period. The minor fluctuations indicate deliberate management of debt levels, with no significant increase or decrease in leverage ratios. This stability suggests a cautious approach toward leveraging, aligning with prudent financial management strategies that aim to balance growth opportunities with financial stability.