Zimmer Biomet Holdings Inc (ZBH)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 21,365,300 | 21,496,900 | 21,066,000 | 23,456,400 | 24,417,700 |
| Total stockholders’ equity | US$ in thousands | 12,468,100 | 12,480,500 | 12,020,300 | 12,660,700 | 12,194,200 |
| Financial leverage ratio | 1.71 | 1.72 | 1.75 | 1.85 | 2.00 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $21,365,300K ÷ $12,468,100K
= 1.71
The financial leverage ratio of Zimmer Biomet Holdings Inc has exhibited a declining trend over the past five years, decreasing from 2.00 as of December 31, 2020, to 1.71 as of December 31, 2024. This suggests that the company has been gradually reducing its reliance on debt to finance its operations and investments. A lower financial leverage ratio indicates a stronger financial position and less risk associated with potential default on debt obligations. Zimmer Biomet's decreasing trend in this ratio indicates a positive shift towards a more sustainable capital structure and improved financial stability.
Peer comparison
Dec 31, 2024