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.