Autodesk Inc (ADSK)

Financial leverage ratio

		Apr 30, 2024	Jan 31, 2024	Oct 31, 2023	Jul 31, 2023	Apr 30, 2023	Jan 31, 2023	Oct 31, 2022	Jul 31, 2022	Apr 30, 2022	Jan 31, 2022	Oct 31, 2021	Jul 31, 2021	Apr 30, 2021	Jan 31, 2021	Oct 31, 2020	Jul 31, 2020	Apr 30, 2020	Jan 31, 2020	Oct 31, 2019	Jul 31, 2019
Total assets	US$ in thousands	9,830,000	9,912,000	9,226,000	9,107,000	9,069,000	9,438,000	8,635,000	8,227,000	8,261,000	8,607,000	8,531,000	7,420,600	7,298,300	7,279,800	5,944,500	5,747,300	5,543,900	6,179,300	5,036,600	4,872,700
Total stockholders’ equity	US$ in thousands	2,161,000	1,855,000	1,482,000	1,206,000	897,000	1,145,000	906,000	740,000	681,000	849,000	1,280,000	1,328,000	1,128,000	965,000	69,300	67,300	-139,100	-139,000	-171,500	-194,300
Financial leverage ratio		4.55	5.34	6.23	7.55	10.11	8.24	9.53	11.12	12.13	10.14	6.66	5.59	6.47	7.54	85.78	85.40	—	—	—	—

April 30, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $9,830,000K ÷ $2,161,000K
= 4.55

The financial leverage ratio of Autodesk Inc has shown an increasing trend over the past few quarters, indicating a higher level of debt relative to equity. The ratio stood at 4.55 as of April 30, 2024, and has steadily increased to 5.34, 6.23, and 7.55 in the subsequent quarters. This upward trend suggests that the company has been utilizing more debt financing to support its operations and growth.

The sharp spike in the ratio to 10.11 as of April 30, 2023, followed by fluctuations in the subsequent quarters, could indicate potential variability in the company's capital structure and debt levels during those periods. Furthermore, the ratio exceeding 85 in the last two quarters implies a significant proportion of debt in the company's capital structure, possibly due to a large debt issuance or other financial events.

Overall, the increasing trend in the financial leverage ratio signals a higher risk for Autodesk Inc as higher leverage can amplify both returns and losses. It is essential for investors and stakeholders to closely monitor the company's debt levels and management's ability to service and repay its debt obligations efficiently.