Lumentum Holdings Inc (LITE)
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 | 4,218,700 | 3,975,000 | 3,966,100 | 3,969,600 | 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 |
| Total stockholders’ equity | US$ in thousands | 1,134,700 | 879,500 | 872,300 | 895,900 | 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 |
| Financial leverage ratio | 3.72 | 4.52 | 4.55 | 4.43 | 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 |
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 exhibits a notable upward trend over the analyzed period. Initially, the ratio was approximately 1.87 as of September 30, 2020, indicating a modest level of leverage. Throughout the subsequent quarters, there was a gradual decline reaching a low of 1.73 by March 31, 2021, suggesting a period of reduced leverage and potentially a conservative approach to debt financing.
However, after this period, the ratio experienced an upward trajectory, reflecting increased reliance on debt. The ratio surpassed the 2.0 mark during the quarter ending March 31, 2022, reaching 2.16. This increasing trend continued through subsequent periods, with the leverage ratio peaking at approximately 4.55 on December 31, 2024. The escalation indicates a significant augmentation in the company's debt levels relative to its equity base.
Between December 31, 2024, and June 30, 2025, the ratio shows a slight decrease from 4.55 to 3.72, which may denote some reduction in leverage or increased equity base. Nevertheless, the overall trajectory remains elevated compared to initial levels, illustrating a sustained increase in financial leverage over the analyzed timeframe.
This pattern suggests that Lumentum Holdings Inc. has progressively increased its reliance on debt financing, especially from March 2022 onward, which has resulted in a higher financial leverage ratio. A higher leverage ratio signifies increased financial risk, as a greater proportion of the company's capital structure is financed through debt, potentially amplifying both returns and vulnerabilities depending on operational performance and market conditions.
Peer comparison
Jun 30, 2025