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.
Peer comparison
Jan 31, 2024