DocuSign Inc (DOCU)

Financial leverage ratio

		Jan 31, 2025	Oct 31, 2024	Jul 31, 2024	Apr 30, 2024	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
Total assets	US$ in thousands	4,012,700	3,770,210	3,753,940	2,926,690	2,971,290	3,337,630	3,267,400	3,129,900	3,012,720	2,731,580	2,667,350	2,574,130	2,541,260	2,410,500	2,355,690	2,297,120	2,336,510	2,051,120	2,053,310	1,921,490
Total stockholders’ equity	US$ in thousands	2,002,690	1,989,380	1,961,410	1,137,000	1,129,740	965,033	847,759	749,492	617,287	468,506	407,131	348,949	275,503	239,569	211,876	243,237	325,737	426,032	501,891	522,788
Financial leverage ratio		2.00	1.90	1.91	2.57	2.63	3.46	3.85	4.18	4.88	5.83	6.55	7.38	9.22	10.06	11.12	9.44	7.17	4.81	4.09	3.68

January 31, 2025 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $4,012,700K ÷ $2,002,690K
= 2.00

DocuSign Inc's financial leverage ratio has shown a decreasing trend from April 2020 to January 2025. The ratio started at 3.68 in April 2020, peaked at 11.12 in July 2021, and then gradually decreased to 2.00 in January 2025. The financial leverage ratio measures the company's level of debt relative to its equity. A higher ratio indicates higher financial leverage, implying that the company is relying more on debt to finance its operations, while a lower ratio suggests a lower reliance on debt.

The decreasing trend in DocuSign's financial leverage ratio could indicate a shift towards a more conservative capital structure with a lower proportion of debt in relation to equity. This could potentially reduce financial risk and improve the company's financial stability. Overall, monitoring the financial leverage ratio over time can provide insights into the company's leverage and risk profile, helping investors and stakeholders assess its financial health and stability.