Agilysys Inc (AGYS)

Financial leverage ratio

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019
Total assets	US$ in thousands	350,430	346,658	255,214	251,347	243,036	246,161	220,766	208,759	214,162	202,338	188,100	189,485	189,873	189,201	173,714	176,103	154,562	171,828	163,795	167,448
Total stockholders’ equity	US$ in thousands	236,477	230,273	116,618	111,686	109,310	111,912	106,594	101,276	97,344	92,413	87,718	84,487	79,876	81,779	77,924	71,350	71,757	96,936	98,365	99,923
Financial leverage ratio		1.48	1.51	2.19	2.25	2.22	2.20	2.07	2.06	2.20	2.19	2.14	2.24	2.38	2.31	2.23	2.47	2.15	1.77	1.67	1.68

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 some fluctuations over the past few quarters. The ratio has ranged between 1.48 and 2.47 during the period from Dec 31, 2019, to Mar 31, 2024.

The ratio measures the proportion of the company's debt to its equity, indicating the degree of financial risk and the company's reliance on debt financing. Agilysys Inc's financial leverage ratio has generally been above 2 over the past few quarters, indicating a higher level of debt relative to equity in its capital structure.

A higher financial leverage ratio suggests that the company is more leveraged or reliant on debt financing, which can amplify returns in good times but also increase financial risk in challenging economic conditions. Conversely, a lower ratio would indicate a more conservative capital structure with less reliance on debt.

It is important for investors and stakeholders to monitor the financial leverage ratio over time to assess the company's ability to meet its financial obligations and manage its debt effectively. Additionally, fluctuations in the ratio may provide insights into the company's financial flexibility and risk exposure.