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.