DXC Technology Co (DXC)

Financial leverage ratio

Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 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
Total assets US$ in thousands 13,205,000 13,033,000 13,504,000 13,353,000 13,871,000 14,892,000 14,709,000 15,293,000 15,845,000 18,254,000 17,737,000 18,647,000 20,139,000 19,953,000 20,115,000 20,867,000 22,038,000 23,634,000 25,670,000 27,894,000
Total stockholders’ equity US$ in thousands 3,490,000 2,990,000 2,981,000 2,850,000 2,811,000 3,107,000 3,467,000 3,603,000 3,820,000 4,952,000 4,936,000 5,049,000 5,375,000 5,087,000 5,083,000 5,386,000 5,308,000 5,995,000 4,751,000 4,593,000
Financial leverage ratio 3.78 4.36 4.53 4.69 4.93 4.79 4.24 4.24 4.15 3.69 3.59 3.69 3.75 3.92 3.96 3.87 4.15 3.94 5.40 6.07

March 31, 2025 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $13,205,000K ÷ $3,490,000K
= 3.78

DXC Technology Co's financial leverage ratio has shown a decreasing trend over the past few years, indicating an improvement in its leverage position. As of March 31, 2025, the financial leverage ratio stood at 3.78, down from 6.07 on June 30, 2020. This suggests that the company has been progressively reducing its reliance on debt to finance its operations and investments.

A decreasing financial leverage ratio generally indicates that the company is becoming less reliant on debt financing, which can be viewed positively by investors and creditors. It reflects a stronger financial position and a reduced risk of financial distress.

Overall, the trend in DXC Technology Co's financial leverage ratio signals a positive development in its capital structure and financial health. Further monitoring of this ratio will be important to assess the company's ongoing ability to manage its debt levels effectively.