Liquidity Services Inc (LQDT)

Debt-to-assets ratio

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Long-term debt	US$ in thousands	—	—	—	—	—
Total assets	US$ in thousands	288,970	288,104	255,576	196,634	187,283
Debt-to-assets ratio		0.00	0.00	0.00	0.00	0.00

September 30, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $—K ÷ $288,970K
= 0.00

As per the provided data, the debt-to-assets ratio of Liquidity Services Inc has consistently been 0.00 for the past five years, from 2019 to 2023. A debt-to-assets ratio of 0.00 indicates that the company has no debt on its balance sheet in relation to its total assets.

This implies that Liquidity Services Inc relies entirely on equity financing to fund its assets, indicating a strong financial position and a low level of financial risk. With a debt-to-assets ratio of 0.00, the company is not relying on borrowed funds to finance its operations, which can be seen as a positive sign to investors and creditors.

It suggests that Liquidity Services Inc has a stable capital structure and is not overly leveraged. However, while a low debt-to-assets ratio is generally favorable, it's important to note that a zero ratio could also indicate that the company may not be taking advantage of potential financial leveraging opportunities that could benefit the business or that it may have significantly low total assets compared to its competitors.

In conclusion, the consistent 0.00 debt-to-assets ratio over the past five years suggests that Liquidity Services Inc has been managing its financial structure prudently, but it's important for stakeholders to closely monitor the company's capital structure and overall financial performance in conjunction with this ratio to make well-informed investment decisions.