CommVault Systems Inc (CVLT)

Financial leverage ratio

		Mar 31, 2024	Dec 31, 2023	Sep 30, 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	943,913	804,074	772,692	741,732	782,574	829,942	779,788	792,723	816,080	768,559	779,754	839,388	904,173	905,579	851,978	865,837	845,076	862,568	801,766	793,322
Total stockholders’ equity	US$ in thousands	278,085	174,603	181,523	172,016	186,098	260,016	265,263	270,484	255,829	253,460	299,778	354,538	394,034	414,071	419,476	434,235	411,904	417,633	372,114	359,817
Financial leverage ratio		3.39	4.61	4.26	4.31	4.21	3.19	2.94	2.93	3.19	3.03	2.60	2.37	2.29	2.19	2.03	1.99	2.05	2.07	2.15	2.20

March 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $943,913K ÷ $278,085K
= 3.39

The financial leverage ratio of CommVault Systems Inc has exhibited fluctuations over the past several quarters. The ratio has generally been above 2, indicating that the company relies more on debt financing rather than equity to fund its operations and growth.

Of particular note is the significant increase in the leverage ratio from December 2023 to March 2024, rising from 4.61 to 3.39. This indicates a reduction in the company's reliance on debt during the first quarter of 2024. However, despite this decrease, the ratio remains relatively high compared to historical levels.

Overall, the trend in the financial leverage ratio suggests that CommVault Systems Inc has been managing its debt levels effectively, with fluctuations possibly reflecting adjustments in the company's capital structure or changes in its financing strategies. It is important for investors and analysts to continue monitoring the company's leverage ratio and assess its implications for the company's financial health and risk profile.