DXC Technology Co (DXC)
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 | 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 | 26,006,000 | 29,599,000 | 29,516,000 | 32,577,000 |
| Total stockholders’ equity | US$ in thousands | 2,811,000 | 3,107,000 | 3,147,000 | 3,278,000 | 3,497,000 | 4,627,000 | 4,615,000 | 4,725,000 | 5,052,000 | 4,772,000 | 4,772,000 | 5,077,000 | 4,973,000 | 5,655,000 | 4,401,000 | 4,593,000 | 4,785,000 | 8,749,000 | 8,550,000 | 10,913,000 |
| Financial leverage ratio | 4.93 | 4.79 | 4.67 | 4.67 | 4.53 | 3.95 | 3.84 | 3.95 | 3.99 | 4.18 | 4.22 | 4.11 | 4.43 | 4.18 | 5.83 | 6.07 | 5.43 | 3.38 | 3.45 | 2.99 |
March 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $13,871,000K ÷ $2,811,000K
= 4.93
The financial leverage ratio of DXC Technology Co has been fluctuating over the past two years. The ratio has shown an increasing trend from the fourth quarter of 2019 to the second quarter of 2021, reaching a peak of 6.07 in the second quarter of 2020. This indicates that the company relied more on debt to finance its operations during this period.
However, there was a notable decrease in the financial leverage ratio in the third and fourth quarters of 2021, followed by an increase in the first quarter of 2022. The ratio remained relatively stable in the range of 3.84 to 4.43 from the third quarter of 2022 to the second quarter of 2023.
In the most recent quarter, the financial leverage ratio increased to 4.93, which suggests that the company has become more leveraged compared to the previous quarter. Overall, the financial leverage ratio fluctuated during the period under review, indicating changes in the company's capital structure and its reliance on debt financing.
Peer comparison
Mar 31, 2024