H&R Block Inc (HRB)
Financial leverage ratio
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Apr 30, 2021 | Apr 30, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 3,218,810 | 3,072,260 | 3,269,160 | 3,653,650 | 5,112,050 |
| Total stockholders’ equity | US$ in thousands | 90,594 | 32,064 | 211,631 | 352,401 | 71,041 |
| Financial leverage ratio | 35.53 | 95.82 | 15.45 | 10.37 | 71.96 |
June 30, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,218,810K ÷ $90,594K
= 35.53
The financial leverage ratio of H&R Block Inc has fluctuated over the past five years, ranging from a low of 10.37 in April 2021 to a high of 95.82 in June 2023. The ratio measures the extent to which the company relies on debt to finance its operations and growth.
A high financial leverage ratio indicates that a significant portion of the company's assets is funded by debt, which can lead to increased financial risk and potential difficulties in meeting debt obligations. Conversely, a lower ratio suggests a lower reliance on debt financing, which may reflect a more conservative financial strategy.
In the most recent period as of June 30, 2024, the financial leverage ratio decreased to 35.53, which may indicate that the company has reduced its debt levels relative to its equity capital. This could be a positive sign, as lower leverage ratios generally imply a lower risk of financial distress and default for the company.
Overall, analyzing the trend in the financial leverage ratio of H&R Block Inc reveals fluctuations over time, with the latest ratio indicating a potentially improved debt-to-equity structure compared to the previous years. Further evaluation of the company's financial health and performance would be necessary to fully assess the implications of these changes.
Peer comparison
Jun 30, 2024