Agilysys Inc (AGYS)

Financial leverage ratio

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Total assets	US$ in thousands	350,430	243,036	214,162	189,873	154,562
Total stockholders’ equity	US$ in thousands	236,477	109,310	97,344	79,876	71,757
Financial leverage ratio		1.48	2.22	2.20	2.38	2.15

March 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $350,430K ÷ $236,477K
= 1.48

The financial leverage ratio of Agilysys Inc has shown a declining trend over the past five years. In the most recent fiscal year ending March 31, 2024, the ratio was at 1.48, indicating a decrease from 2.22 in the previous year. This decline suggests that the company relied less on debt to finance its operations compared to the prior year.

Although the ratio has fluctuated over the years, it seems that Agilysys Inc has been managing its leverage effectively, as the ratio has remained relatively stable around the 2.0 level. A lower financial leverage ratio indicates lower financial risk and potential volatility associated with debt obligations.

Overall, the decreasing trend in the financial leverage ratio of Agilysys Inc may signify a prudent approach to managing its capital structure and suggests a move towards a more conservative debt position.