Box Inc (BOX)

Financial leverage ratio

		Jan 31, 2024	Oct 31, 2023	Jul 31, 2023	Apr 30, 2023	Jan 31, 2023	Oct 31, 2022	Jul 31, 2022	Apr 30, 2022	Jan 31, 2022	Oct 31, 2021	Jul 31, 2021	Apr 30, 2021	Jan 31, 2021	Oct 31, 2020	Jul 31, 2020	Apr 30, 2020	Jan 31, 2020	Oct 31, 2019	Jul 31, 2019	Apr 30, 2019
Total assets	US$ in thousands	1,241,160	1,033,820	1,068,140	1,108,670	1,207,160	1,056,450	1,066,310	1,171,590	1,392,010	1,405,080	1,525,610	1,310,130	1,351,680	941,561	960,511	948,913	959,991	843,918	827,316	825,721
Total stockholders’ equity	US$ in thousands	-431,062	-540,415	-536,964	-512,085	-523,851	-567,594	-579,504	-483,965	-395,087	-273,150	-152,987	124,813	151,065	87,562	59,592	40,848	22,357	20,775	22,266	30,538
Financial leverage ratio		—	—	—	—	—	—	—	—	—	—	—	10.50	8.95	10.75	16.12	23.23	42.94	40.62	37.16	27.04

January 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,241,160K ÷ $-431,062K
= —

The financial leverage ratio for Box Inc has shown fluctuations over the past few quarters. The ratio indicates the proportion of the company's assets that are financed by debt compared to equity. A high financial leverage ratio suggests that the company relies more on debt to finance its operations, while a low ratio indicates a more conservative capital structure.

From the data provided, we observe that the financial leverage ratio was relatively stable around 10.50 to 10.75 from April 2021 to July 2022. However, there was a significant increase in the ratio to 16.12 in October 2022, followed by a further rise to 23.23 in January 2023. This indicates a higher reliance on debt funding during this period.

Subsequently, there was a sharp decrease in the financial leverage ratio to 8.95 in October 2023, suggesting a reduction in the proportion of debt in the company's capital structure. The ratio remained low in subsequent quarters, indicating a more balanced mix of debt and equity financing.

The spike in the financial leverage ratio in the earlier quarters of the provided data might have been a result of strategic decisions or specific financing activities undertaken by Box Inc. It is essential for investors and stakeholders to monitor changes in the financial leverage ratio to assess the company's risk profile and financial stability over time.