Liquidity Services Inc (LQDT)

Financial leverage ratio

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Total assets	US$ in thousands	288,970	288,104	255,576	196,634	187,283
Total stockholders’ equity	US$ in thousands	161,533	154,536	135,015	111,815	116,175
Financial leverage ratio		1.79	1.86	1.89	1.76	1.61

September 30, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $288,970K ÷ $161,533K
= 1.79

The financial leverage ratio of Liquidity Services Inc has shown variations over the past five years. The ratio decreased from 1.61 in 2019 to 1.79 in 2023, reflecting an increase in leverage. This suggests that the company has been relying more on debt to finance its operations and growth. While a higher leverage ratio can amplify returns on equity, it also increases financial risk and interest expenses. It would be important for stakeholders to closely monitor the company's ability to manage its debt levels and ensure sustainable growth.