Liquidity Services Inc (LQDT)
Financial leverage ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 346,888 | 288,970 | 288,104 | 255,576 | 196,634 |
| Total stockholders’ equity | US$ in thousands | 182,560 | 161,533 | 154,536 | 135,015 | 111,815 |
| Financial leverage ratio | 1.90 | 1.79 | 1.86 | 1.89 | 1.76 |
September 30, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $346,888K ÷ $182,560K
= 1.90
The financial leverage ratio of Liquidity Services Inc has shown some fluctuations over the past five years, ranging from 1.76 in 2020 to 1.90 in 2024. This ratio indicates the company's reliance on debt financing in relation to its equity. A higher financial leverage ratio suggests a higher level of debt relative to equity, implying potential higher financial risk.
Liquidity Services Inc's financial leverage ratio has remained above 1.76 since 2020, indicating a consistent reliance on debt to finance its operations and investments. However, the fluctuations in the ratio over the years suggest varying levels of debt utilization and overall financial risk management by the company.
It is important for investors and stakeholders to monitor this ratio over time to assess the company's financial health and risk profile, keeping in mind the potential implications of high leverage on liquidity, profitability, and overall stability.
Peer comparison
Sep 30, 2024