Gen Digital Inc. (GEN)
Financial leverage ratio
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 15,772,000 | 15,947,000 | 6,943,000 | 6,361,000 | 7,735,000 |
| Total stockholders’ equity | US$ in thousands | 2,197,000 | 2,200,000 | -93,000 | -500,000 | 10,000 |
| Financial leverage ratio | 7.18 | 7.25 | — | — | 773.50 |
March 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $15,772,000K ÷ $2,197,000K
= 7.18
The financial leverage ratio of Gen Digital Inc. has shown a slight decrease from 7.25 in March 2023 to 7.18 in March 2024. This ratio indicates that the company relies heavily on debt financing to support its operations. The higher the financial leverage ratio, the more the company is relying on debt to finance its assets.
It is notable that for the year ending March 31, 2020, the financial leverage ratio was significantly higher at 773.50, which might suggest a sudden increase in debt utilization relative to equity. The absence of data for March 31, 2022, makes it difficult to assess the trend in leverage for that year.
Gen Digital Inc. should monitor its financial leverage ratio closely as high levels of leverage can increase risk and financial vulnerability, especially in times of economic uncertainty or fluctuating interest rates. The management should consider a balanced approach to capital structure to ensure sustainable growth and financial stability.
Peer comparison
Mar 31, 2024