Cirrus Logic Inc (CRUS)

Financial leverage ratio

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Total assets	US$ in thousands	2,231,580	2,063,970	2,123,400	1,830,610	1,592,680
Total stockholders’ equity	US$ in thousands	1,817,010	1,658,280	1,599,820	1,389,000	1,229,780
Financial leverage ratio		1.23	1.24	1.33	1.32	1.30

March 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,231,580K ÷ $1,817,010K
= 1.23

The financial leverage ratio of Cirrus Logic Inc has exhibited a slight decline over the past five years. The ratio decreased from 1.30 in fiscal year ending March 31, 2020, to 1.23 in the most recent fiscal year ending March 31, 2024. This indicates that the company has become less reliant on debt to finance its operations and growth. Generally, a lower financial leverage ratio implies lower financial risk as the company is using less debt to support its assets. It suggests that Cirrus Logic Inc's capital structure has become more balanced with a decreasing reliance on debt financing. Additionally, a decreasing financial leverage ratio may signal improved solvency and stability for the company.