Waters Corporation (WAT)

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	4,626,850	4,497,180	4,548,200	3,306,820	3,281,450	3,070,050	3,040,570	3,041,270	3,094,930	3,115,920	3,103,650	3,211,560	2,839,920	2,679,290	2,648,300	2,666,520	2,557,060	2,561,260	2,822,920	3,249,730
Total stockholders’ equity	US$ in thousands	1,150,340	905,522	771,229	599,823	504,488	385,236	392,124	374,937	367,554	295,222	268,273	230,962	232,144	-41,581	-191,742	-337,999	-216,281	115,500	556,245	967,742
Financial leverage ratio		4.02	4.97	5.90	5.51	6.50	7.97	7.75	8.11	8.42	10.55	11.57	13.91	12.23	—	—	—	—	22.18	5.07	3.36

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $4,626,850K ÷ $1,150,340K
= 4.02

The financial leverage ratio of Waters Corp. has shown a declining trend over the past eight quarters, dropping from 8.11 in Q1 2022 to 4.02 in Q4 2023. This indicates that the company has been reducing its reliance on debt to finance its operations and investment activities. A lower financial leverage ratio suggests a lower level of financial risk as the company is relying less on borrowed funds. It is important to note that a financial leverage ratio of less than 1 indicates a conservative financing structure, while a ratio greater than 1 signifies that the company is using more debt than equity to finance its assets. Waters Corp.'s decreasing financial leverage ratio may be a positive signal to investors and creditors as it reflects a more stable and sound financial position.