Innovex International, Inc (INVX)

Financial leverage ratio

		Jun 30, 2025	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
Total assets	US$ in thousands	1,227,080	1,196,000	1,197,480	1,132,780	1,008,160	1,021,030	1,028,180	486,980	979,666	975,396	972,515	970,524	973,566	978,110	1,010,430	1,093,740	1,124,710	1,126,830	1,151,170	1,159,540
Total stockholders’ equity	US$ in thousands	995,553	978,376	958,156	904,351	852,524	857,363	881,260	307,946	879,409	880,378	874,916	864,837	868,689	887,775	897,108	979,777	995,324	1,008,270	1,041,530	1,037,560
Financial leverage ratio		1.23	1.22	1.25	1.25	1.18	1.19	1.17	1.58	1.11	1.11	1.11	1.12	1.12	1.10	1.13	1.12	1.13	1.12	1.11	1.12

June 30, 2025 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,227,080K ÷ $995,553K
= 1.23

The financial leverage ratio of Innovex International, Inc. has displayed a generally stable trend from September 30, 2020, through September 30, 2023, oscillating narrowly around the 1.10 to 1.13 range. This indicates that during this period, the company maintained a relatively consistent level of financial leverage, suggesting a steady proportion of debt relative to equity and a conservative approach to leverage.

However, a notable deviation occurs beginning in September 2023, when the ratio experiences a significant increase to 1.58. This rise indicates a substantial increase in the company’s reliance on debt financing relative to equity, which could be indicative of increased leverage risk, expansion financing, or restructuring activities. The ratio subsequently decreases to 1.17 by December 2023, reflecting some reduction in leverage, but remains elevated compared to the pre-September 2023 levels.

Further fluctuations are observed in 2024 and 2025, with the ratio oscillating around 1.18 to 1.23. These movements suggest a moderate adjustment in leverage levels, but overall, the ratio remains above the historical average observed prior to September 2023. This indicates an overall upward shift in leverage levels relative to earlier years.

In conclusion, the company's financial leverage ratio was relatively stable and low through most of the 2020-2023 period, indicating conservative leverage levels. The sharp increase in later 2023 signals a period of increased leverage, which persists at higher levels into 2025, reflecting a potential shift in the company's capital structure and risk profile.