Dentsply Sirona Inc (XRAY)
Financial leverage ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 5,753,000 | 6,626,000 | 6,897,000 | 7,123,000 | 7,370,000 | 7,201,000 | 7,650,000 | 7,673,000 | 7,643,000 | 7,522,000 | 8,948,000 | 9,160,000 | 9,220,000 | 9,288,000 | 9,378,000 | 9,137,000 | 9,342,000 | 8,895,900 | 8,604,200 | 8,058,400 |
| Total stockholders’ equity | US$ in thousands | 1,943,000 | 2,491,000 | 3,064,000 | 3,258,000 | 3,293,000 | 3,371,000 | 3,702,000 | 3,641,000 | 3,812,000 | 3,613,000 | 4,837,000 | 4,906,000 | 5,043,000 | 5,122,000 | 5,074,000 | 4,927,000 | 4,970,000 | 4,760,500 | 4,643,100 | 4,690,200 |
| Financial leverage ratio | 2.96 | 2.66 | 2.25 | 2.19 | 2.24 | 2.14 | 2.07 | 2.11 | 2.00 | 2.08 | 1.85 | 1.87 | 1.83 | 1.81 | 1.85 | 1.85 | 1.88 | 1.87 | 1.85 | 1.72 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $5,753,000K ÷ $1,943,000K
= 2.96
The financial leverage ratio of Dentsply Sirona Inc has been gradually increasing over the past few years, indicating a higher level of debt used to finance the company's assets. The ratio has risen from 1.72 as of March 31, 2020, to 2.96 as of December 31, 2024. This trend suggests that the company has been relying more on debt financing compared to equity financing.
A higher financial leverage ratio can signify increased financial risk as the company may have to make larger interest payments and principal repayments, which could potentially strain its financial position, especially during economic downturns or periods of high-interest rates.
It is essential for investors and stakeholders to monitor Dentsply Sirona Inc's financial leverage ratio closely to assess the company's ability to meet its debt obligations and manage its overall financial health effectively. Additionally, management should consider balancing the use of debt and equity financing to maintain a sustainable capital structure and mitigate excessive financial risk.
Peer comparison
Dec 31, 2024