Aspen Technology Inc (AZPN)

Financial leverage ratio

		Jun 30, 2024	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
Total assets	US$ in thousands	14,071,700	14,109,400	14,227,800	14,240,700	14,486,100	14,566,900	14,900,700	14,971,400	14,969,900	0
Total stockholders’ equity	US$ in thousands	12,812,900	12,810,800	12,849,100	12,926,900	13,070,900	13,119,100	13,147,100	13,170,800	13,169,400	1,734,740
Financial leverage ratio		1.10	1.10	1.11	1.10	1.11	1.11	1.13	1.14	1.14	0.00

June 30, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $14,071,700K ÷ $12,812,900K
= 1.10

Aspen Technology Inc's financial leverage ratio has remained relatively stable over the past few quarters, ranging between 1.10 and 1.14. This indicates that the company's capital structure has been consistent, with a moderate level of financial leverage.

The ratio of 1.10 to 1.14 suggests that Aspen Technology has more assets funded by equity rather than debt. A financial leverage ratio of 1 indicates an equal proportion of debt and equity financing. Therefore, Aspen Technology's ratio below 1.15 indicates a conservative approach to debt financing.

The sudden drop in the financial leverage ratio to 0.00 in the first quarter of 2022 may be due to a significant change in the company's capital structure, possibly a debt repayment or restructuring. However, this anomaly seems to have been corrected in subsequent quarters.

Overall, Aspen Technology Inc's financial leverage ratio analysis implies a stable and relatively low-risk financial position, with moderate reliance on debt to finance its operations and growth initiatives.