Avnet Inc (AVT)
Financial leverage ratio
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 12,118,600 | 12,209,100 | 12,477,200 | 10,388,500 | 8,925,420 |
| Total stockholders’ equity | US$ in thousands | 5,011,500 | 4,925,500 | 4,751,670 | 4,192,760 | 4,084,180 |
| Financial leverage ratio | 2.42 | 2.48 | 2.63 | 2.48 | 2.19 |
June 30, 2025 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $12,118,600K ÷ $5,011,500K
= 2.42
The financial leverage ratio of Avnet Inc. demonstrates a pattern of increasing and subsequent stabilization over the analyzed period. As of June 30, 2021, the ratio stood at 2.19, indicating that the company's total assets financed by shareholders' equity were approximately 2.19 times its equity, reflecting a relatively moderate level of leverage.
By June 30, 2022, the ratio increased to 2.48, signaling a rise in leverage, which could suggest that the company relied more on debt or other forms of external financing to support its asset base. The upward trend continued into June 30, 2023, when the ratio reached 2.63, representing the highest leverage point within the observed timeframe. This may suggest an aggressive approach to leveraging assets during this period, potentially to fund growth initiatives or operational activities.
Subsequently, the ratio receded slightly to 2.48 by June 30, 2024, indicating a reduction in leverage or a possible repayment of debt, which may also imply a shift towards a more conservative capital structure. The ratio further declined marginally to 2.42 by June 30, 2025, returning close to its 2022 levels and suggesting a continued trend towards decreasing leverage, potentially enhancing financial stability and reducing financial risk.
Overall, the data reflect a trend of increasing leverage from 2021 through 2023, followed by a modest reduction in leverage in the subsequent years. This pattern suggests that Avnet Inc. may have employed increased borrowing during the growth phase, and subsequently aimed to deleverage, possibly in response to changing financial strategies or market conditions.
Peer comparison
Jun 30, 2025