Lumentum Holdings Inc (LITE)
Financial leverage ratio
| 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 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 3,931,900 | 4,204,500 | 4,656,000 | 4,545,000 | 4,632,100 | 4,354,000 | 4,418,100 | 4,387,400 | 4,162,200 | 4,133,500 | 3,615,700 | 3,519,000 | 3,551,600 | 3,745,900 | 3,468,200 | 3,387,400 | 3,292,600 | 3,268,700 | 3,221,200 | 2,867,800 |
| Total stockholders’ equity | US$ in thousands | 957,300 | 1,176,700 | 1,277,800 | 1,310,800 | 1,355,800 | 1,538,000 | 1,543,600 | 1,526,400 | 1,875,000 | 1,912,100 | 2,021,900 | 1,971,400 | 1,972,800 | 2,165,000 | 1,921,900 | 1,816,100 | 1,749,200 | 1,734,200 | 1,681,600 | 1,561,300 |
| Financial leverage ratio | 4.11 | 3.57 | 3.64 | 3.47 | 3.42 | 2.83 | 2.86 | 2.87 | 2.22 | 2.16 | 1.79 | 1.79 | 1.80 | 1.73 | 1.80 | 1.87 | 1.88 | 1.88 | 1.92 | 1.84 |
June 30, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,931,900K ÷ $957,300K
= 4.11
The financial leverage ratio of Lumentum Holdings Inc has shown an increasing trend over the past few quarters, indicating a higher level of leverage in the company's capital structure. The ratio has increased from 1.84 in September 2019 to 4.11 in June 2024.
A financial leverage ratio of 4.11 as of June 30, 2024, suggests that the company is using debt financing more aggressively compared to its equity. This could mean that Lumentum Holdings Inc has been relying more on debt to finance its operations and investments.
It is important to note that a high financial leverage ratio can magnify both returns and risks for the company. While debt can be an efficient way to boost returns, it also increases the company's financial risk and susceptibility to economic downturns.
Investors and creditors closely monitor the financial leverage ratio to assess the company's ability to meet its debt obligations and evaluate its overall financial health. Consequently, Lumentum Holdings Inc's increasing financial leverage ratio warrants careful scrutiny of its debt management and capital structure strategies.
Peer comparison
Jun 30, 2024