Cirrus Logic Inc (CRUS)
Financial leverage ratio
| Mar 31, 2024 | Dec 31, 2023 | Sep 23, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,231,580 | 2,217,110 | 2,104,450 | 2,056,590 | 2,063,970 | 2,165,890 | 2,164,070 | 2,105,900 | 2,123,400 | 2,068,120 | 2,226,160 | 1,814,010 | 1,830,610 | 1,825,630 | 1,699,860 | 1,644,040 | 1,592,680 | 1,647,540 | 1,583,630 | 1,470,120 |
| Total stockholders’ equity | US$ in thousands | 1,817,010 | 1,800,760 | 1,708,360 | 1,656,790 | 1,658,280 | 1,716,320 | 1,654,610 | 1,599,190 | 1,599,820 | 1,562,750 | 1,468,090 | 1,406,730 | 1,389,000 | 1,400,360 | 1,316,830 | 1,272,290 | 1,229,780 | 1,259,880 | 1,178,620 | 1,117,250 |
| Financial leverage ratio | 1.23 | 1.23 | 1.23 | 1.24 | 1.24 | 1.26 | 1.31 | 1.32 | 1.33 | 1.32 | 1.52 | 1.29 | 1.32 | 1.30 | 1.29 | 1.29 | 1.30 | 1.31 | 1.34 | 1.32 |
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 shown relative stability over the past few quarters, ranging between 1.23 and 1.34. The ratio measures the proportion of the company's total assets that are financed by debt, with a higher ratio indicating a greater reliance on debt for funding.
During the period under review, we observed fluctuations in the financial leverage ratio, with a peak of 1.52 in the third quarter of 2021 and a low of 1.23 in multiple quarters. Generally, a decreasing trend in the ratio could signify a reduction in financial risk and improved solvency. On the other hand, a rising trend may indicate potential increased financial risk due to higher levels of debt.
It is important for stakeholders to monitor the company's financial leverage ratio over time and compare it to industry benchmarks to assess the company's risk profile and financial health. Additionally, changes in the ratio may also reflect shifts in the company's capital structure and financing decisions.
Peer comparison
Mar 31, 2024