Box Inc (BOX)

Debt-to-assets ratio

		Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021	Jan 31, 2020
Long-term debt	US$ in thousands	370,822	369,351	367,463	297,614	40,000
Total assets	US$ in thousands	1,241,160	1,207,160	1,392,010	1,351,680	959,991
Debt-to-assets ratio		0.30	0.31	0.26	0.22	0.04

January 31, 2024 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $370,822K ÷ $1,241,160K
= 0.30

The debt-to-assets ratio of Box Inc has shown a general increasing trend over the past five years, indicating that the company has been using more debt relative to its total assets. The ratio increased from 0.04 in January 2020 to 0.30 in January 2024. This suggests that the company's reliance on debt to finance its operations and growth has been progressively growing.

In January 2024, Box Inc's debt-to-assets ratio stood at 0.30, indicating that 30% of its total assets were financed by debt. This implies that a considerable portion of Box Inc's assets are funded through debt obligations.

The rising trend in the debt-to-assets ratio could indicate that Box Inc's financial leverage has been increasing, which can bring both risks and benefits. On the positive side, higher leverage can amplify returns on equity for shareholders. However, it also increases the company's financial risk and can lead to higher interest expenses, potentially impacting profitability and financial stability.

It is essential for investors and stakeholders to closely monitor Box Inc's debt levels and overall financial health to assess the company's ability to manage its debt obligations and maintain sustainable growth in the long term.