Varex Imaging Corp (VREX)
Financial leverage ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,242,300 | 1,249,600 | 1,211,700 | 1,190,800 | 1,180,900 | 1,184,400 | 1,163,400 | 1,142,600 | 1,139,000 | 1,147,500 | 1,160,900 | 1,132,600 | 1,137,100 | 1,139,500 | 1,121,700 | 1,082,000 | 1,068,400 | 1,038,900 | 1,043,700 | 965,600 |
| Total stockholders’ equity | US$ in thousands | 568,900 | 567,700 | 531,500 | 519,600 | 511,700 | 533,400 | 514,800 | 501,100 | 492,800 | 483,300 | 471,500 | 454,700 | 450,200 | 451,700 | 467,100 | 451,100 | 447,900 | 444,900 | 434,400 | 433,300 |
| Financial leverage ratio | 2.18 | 2.20 | 2.28 | 2.29 | 2.31 | 2.22 | 2.26 | 2.28 | 2.31 | 2.37 | 2.46 | 2.49 | 2.53 | 2.52 | 2.40 | 2.40 | 2.39 | 2.34 | 2.40 | 2.23 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,242,300K ÷ $568,900K
= 2.18
The financial leverage ratio of Varex Imaging Corp has shown some fluctuations over the past five years, ranging from 2.18 to 2.49. The trend indicates that the company's reliance on debt to finance its operations has generally increased over this period.
The higher financial leverage ratios suggest that Varex Imaging Corp has been taking on more debt relative to its equity, which can increase financial risk but also potentially amplify returns for shareholders. However, a very high leverage ratio could also indicate that the company may struggle to meet its debt obligations in the future if its earnings decline.
It is important for investors and stakeholders to carefully monitor changes in the financial leverage ratio to assess the company's ability to manage its debt levels effectively and sustain its financial health over the long term.
Peer comparison
Dec 31, 2023