Blackbaud Inc (BLKB)

Financial leverage ratio

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Total assets US$ in thousands 2,912,280 2,992,700 2,971,620 2,044,730 1,992,960
Total stockholders’ equity US$ in thousands 808,705 744,032 717,060 426,150 396,764
Financial leverage ratio 3.60 4.02 4.14 4.80 5.02

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,912,280K ÷ $808,705K
= 3.60

The financial leverage ratio of Blackbaud Inc has shown a decreasing trend over the past five years, indicating an improvement in the company's leverage position. The ratio decreased from 5.02 in 2019 to 3.60 in 2023. This suggests that Blackbaud has reduced its reliance on debt financing relative to equity over the period, leading to a lower level of financial risk. A decreasing trend in the financial leverage ratio is generally viewed positively by investors and creditors as it signifies a healthier balance sheet and improved financial stability.