Blackline Inc (BL)

Financial leverage ratio

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 Mar 31, 2019
Total assets US$ in thousands 2,100,760 2,016,140 1,975,370 1,932,650 1,943,660 1,877,660 1,873,570 1,870,230 1,817,580 1,750,390 1,732,070 1,708,800 1,113,500 1,046,760 1,033,250 1,011,370 1,014,550 975,639 523,502 504,953
Total stockholders’ equity US$ in thousands 260,881 215,731 176,362 116,992 111,868 77,931 79,183 66,128 325,036 340,740 337,041 339,628 422,070 416,934 409,778 396,189 398,613 393,820 324,548 318,036
Financial leverage ratio 8.05 9.35 11.20 16.52 17.37 24.09 23.66 28.28 5.59 5.14 5.14 5.03 2.64 2.51 2.52 2.55 2.55 2.48 1.61 1.59

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,100,760K ÷ $260,881K
= 8.05

The financial leverage ratio of Blackline Inc has exhibited fluctuations over the periods analyzed. It is a measure of the company's use of debt to finance its operations and assets.

In the recent period, the financial leverage ratio has increased steadily from 8.05 at the end of December 2023 to 16.52 at the end of March 2023, indicating a significant rise in the company's reliance on debt. This trend continued in the previous periods, with a notable peak of 28.28 at the end of March 2022.

The sharp increase in the financial leverage ratio suggests that Blackline Inc has been taking on more debt relative to its equity, which can amplify returns during good times but also increase financial risk during downturns. The company may be utilizing debt to fund growth opportunities, acquisitions, or other investments.

Conversely, the financial leverage ratio showed lower levels in earlier periods, such as 2.64 at the end of December 2020 and 1.61 at the end of March 2019. This indicates a historical tendency towards lower leverage and a more conservative financial structure.

Overall, the fluctuating trend in the financial leverage ratio of Blackline Inc indicates varying degrees of leverage employed by the company over time, reflecting changes in its capital structure and financing decisions. It is essential for stakeholders to closely monitor these changes to assess the company's risk profile and financial health.