DXC Technology Co (DXC)
Financial leverage ratio
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 13,871,000 | 15,845,000 | 20,139,000 | 22,038,000 | 26,006,000 |
| Total stockholders’ equity | US$ in thousands | 2,811,000 | 3,497,000 | 5,052,000 | 4,973,000 | 4,785,000 |
| Financial leverage ratio | 4.93 | 4.53 | 3.99 | 4.43 | 5.43 |
March 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $13,871,000K ÷ $2,811,000K
= 4.93
The financial leverage ratio for DXC Technology Co has shown some fluctuations over the past five years. The ratio increased from 3.99 in 2022 to 4.43 in 2021, before decreasing to 4.53 in 2023 and then further to 4.93 in 2024.
A higher financial leverage ratio indicates that a company relies more on debt to finance its operations and growth, which can potentially lead to higher financial risk due to increased interest expenses and debt obligations. On the other hand, a lower ratio reflects a lower level of debt in the company's capital structure, indicating a potentially safer financial position.
In the case of DXC Technology Co, the fluctuation in the financial leverage ratio suggests varying degrees of debt utilization over the years. It would be important for stakeholders to closely monitor these changes to assess the company's risk profile and ability to manage its debt obligations effectively.
Peer comparison
Mar 31, 2024