Aspen Technology Inc (AZPN)
Financial leverage ratio
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | ||
|---|---|---|---|---|
| Total assets | US$ in thousands | 14,071,700 | 14,486,100 | 14,969,900 |
| Total stockholders’ equity | US$ in thousands | 12,812,900 | 13,070,900 | 13,169,400 |
| Financial leverage ratio | 1.10 | 1.11 | 1.14 |
June 30, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $14,071,700K ÷ $12,812,900K
= 1.10
The financial leverage ratio for Aspen Technology Inc has shown a decreasing trend over the past three years, declining from 1.14 in June 2022 to 1.10 in June 2024. This indicates a reduction in the company's reliance on debt financing to fund its operations and investments. A lower financial leverage ratio suggests that the company has a lower level of financial risk and may have a stronger financial position with a greater proportion of equity relative to debt in its capital structure. It is important to further analyze the components of the company's capital structure and overall financial health to fully understand the implications of this trend in the financial leverage ratio.
Peer comparison
Jun 30, 2024