Lumentum Holdings Inc (LITE)
Financial leverage ratio
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 4,218,700 | 3,931,900 | 4,632,100 | 4,162,200 | 3,551,600 |
| Total stockholders’ equity | US$ in thousands | 1,134,700 | 957,300 | 1,355,800 | 1,875,000 | 1,972,800 |
| Financial leverage ratio | 3.72 | 4.11 | 3.42 | 2.22 | 1.80 |
June 30, 2025 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $4,218,700K ÷ $1,134,700K
= 3.72
The financial leverage ratio of Lumentum Holdings Inc. has exhibited a notable upward trajectory over the period from June 30, 2021, to June 30, 2025. Specifically, the ratio increased from 1.80 in 2021 to 2.22 in 2022, reflecting a moderate rise in leverage. Subsequently, it surged significantly to 3.42 in 2023, indicating that the company progressively relied more on debt or borrowed funds relative to its equity during this period.
The trend continued in 2024, with the ratio reaching 4.11, suggesting an increased financial risk profile as the proportion of debt to equity further expanded. However, by June 30, 2025, the ratio declined slightly to 3.72, implying a marginal reduction in leverage levels compared to the previous year, though still remaining elevated relative to the 2021 baseline.
Overall, the data indicates that Lumentum Holdings Inc. has experienced a substantial increase in leverage over the analyzed period, highlighting a strategic shift towards higher debt utilization. While this may facilitate growth and capital expansion, it also raises considerations regarding the company's capacity to meet its debt obligations, particularly as leverage has been notably amplified over these years.
Peer comparison
Jun 30, 2025