Avnet Inc (AVT)
Financial leverage ratio
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 12,209,100 | 12,477,200 | 10,388,500 | 8,925,400 | 8,105,200 |
| Total stockholders’ equity | US$ in thousands | 4,925,500 | 4,751,670 | 4,192,760 | 4,084,180 | 3,726,400 |
| Financial leverage ratio | 2.48 | 2.63 | 2.48 | 2.19 | 2.18 |
June 30, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $12,209,100K ÷ $4,925,500K
= 2.48
The financial leverage ratio of Avnet Inc has fluctuated over the past five years. It was at 2.18 in 2020, increased to 2.19 in 2021, decreased to 2.48 in 2022, remained the same at 2.48 in 2023, and then declined to 2.48 in 2024.
A financial leverage ratio of 2.48 in 2024 indicates that for every dollar of equity, Avnet Inc has $2.48 of debt. This suggests that the company relies more heavily on debt financing to support its operations and growth initiatives.
The relatively stable financial leverage ratio from 2022 to 2023 may indicate consistency in the capital structure management of the company. However, the overall upward trend in the financial leverage ratio over the past five years indicates an increasing level of financial risk due to higher debt levels relative to equity.
It is important for investors and stakeholders to closely monitor Avnet Inc's financial leverage ratio to assess the company's ability to meet its debt obligations and its overall financial health.
Peer comparison
Jun 30, 2024