H&R Block Inc (HRB)
Financial leverage ratio
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 3,263,900 | 3,218,810 | 3,072,260 | 3,269,160 | 3,653,650 |
| Total stockholders’ equity | US$ in thousands | 88,896 | 90,594 | 32,064 | 211,631 | 352,401 |
| Financial leverage ratio | 36.72 | 35.53 | 95.82 | 15.45 | 10.37 |
June 30, 2025 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,263,900K ÷ $88,896K
= 36.72
The financial leverage ratio of H&R Block Inc has exhibited significant fluctuations over the period from June 30, 2021, to June 30, 2025.
As of June 30, 2021, the ratio was 10.37, indicating a moderate level of leverage, where the company financed its assets with a proportionate amount of debt relative to equity. By June 30, 2022, this ratio increased markedly to 15.45, suggesting that the company adopted a more leveraged capital structure, increasing its reliance on debt financing.
The most notable change occurred by June 30, 2023, when the ratio dramatically surged to 95.82. This represents a substantial escalation in leverage, implying that the company's debt relative to equity skyrocketed during this period. Such a spike could reflect new debt issuance, acquisition of liabilities, or significant capital structure restructuring, all of which substantially increase financial risk.
Following this peak, the ratio decreased to 35.53 as of June 30, 2024. While still elevated compared to earlier years, this reduction indicates a significant deleveraging process or repayment efforts, thus decreasing the company's financial risk profile.
By June 30, 2025, the ratio slightly rose again to 36.72. This slight increase suggests a stabilization or moderate re-leveraging within the company's capital structure, though the leverage level remains substantially higher than the earlier years.
Overall, the trajectory of the financial leverage ratio indicates periods of aggressive debt accumulation followed by partial deleveraging, with the most dramatic change occurring in 2023. This pattern warrants attention as it reflects shifts in the company’s financing strategy and its risk appetite during these years.
Peer comparison
Jun 30, 2025