Dentsply Sirona Inc (XRAY)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 7,370,000 | 7,643,000 | 9,239,000 | 9,342,000 | 8,603,000 |
| Total stockholders’ equity | US$ in thousands | 3,293,000 | 3,811,000 | 4,996,000 | 4,932,000 | 5,093,000 |
| Financial leverage ratio | 2.24 | 2.01 | 1.85 | 1.89 | 1.69 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $7,370,000K ÷ $3,293,000K
= 2.24
The financial leverage ratio of DENTSPLY Sirona Inc has been fluctuating over the past five years. The ratio has shown an increasing trend from 1.69 in 2019 to 2.24 in 2023. This indicates that the company has been relying more on debt to finance its operations and investments in recent years.
A higher financial leverage ratio suggests that the company has a higher proportion of debt relative to its equity, which can increase financial risk. It is important to closely monitor this trend to ensure that the company can effectively manage its debt levels and meet its financial obligations. Additionally, it indicates that the company may be more vulnerable to fluctuations in interest rates and economic conditions.
Overall, a rising financial leverage ratio for DENTSPLY Sirona Inc may raise concerns regarding its financial stability and ability to manage its debt effectively. Investors and stakeholders should closely monitor the company's debt levels and financial performance to assess its ability to sustain its operations in the long term.
Peer comparison
Dec 31, 2023