Zimmer Biomet Holdings Inc (ZBH)
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 | 21,365,300 | 21,720,300 | 21,520,000 | 21,452,400 | 21,496,900 | 21,217,300 | 21,294,300 | 21,243,500 | 21,066,000 | 21,333,300 | 21,452,700 | 21,617,500 | 23,456,400 | 24,008,600 | 24,223,200 | 24,026,600 | 24,417,700 | 24,025,500 | 23,647,600 | 25,512,900 |
Total stockholders’ equity | US$ in thousands | 12,468,100 | 12,374,700 | 12,741,100 | 12,598,000 | 12,480,500 | 12,510,800 | 12,371,500 | 12,150,700 | 12,020,300 | 12,244,700 | 12,118,400 | 12,015,500 | 12,660,700 | 12,708,600 | 12,577,900 | 12,445,000 | 12,194,200 | 11,872,200 | 11,641,400 | 11,878,600 |
Financial leverage ratio | 1.71 | 1.76 | 1.69 | 1.70 | 1.72 | 1.70 | 1.72 | 1.75 | 1.75 | 1.74 | 1.77 | 1.80 | 1.85 | 1.89 | 1.93 | 1.93 | 2.00 | 2.02 | 2.03 | 2.15 |
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 shown a steady decline over the reporting period, reflecting the company's reduced reliance on debt to finance its operations. As of December 31, 2024, the financial leverage ratio stood at 1.71, indicating that the company's total debt is 1.71 times its equity. This suggests that Zimmer Biomet Holdings Inc has been gradually deleveraging its balance sheet, potentially reducing financial risk and improving its overall financial health.
The decreasing trend in the financial leverage ratio signals that Zimmer Biomet Holdings Inc may be taking a more conservative approach to its capital structure, which could enhance its ability to weather economic downturns and pursue growth opportunities. Investors and stakeholders typically view a declining financial leverage ratio positively as it indicates a lower level of financial risk and a stronger financial position for the company.
Overall, the decreasing trend in Zimmer Biomet Holdings Inc's financial leverage ratio reflects a prudent approach to managing its capital structure and leveraged position, which could contribute to long-term sustainability and stability for the company.
Peer comparison
Dec 31, 2024