Liquidity Services Inc (LQDT)

Financial leverage ratio

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 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019
Total assets US$ in thousands 346,888 325,538 303,651 278,425 288,970 283,027 283,097 269,201 288,104 282,810 276,819 286,878 255,576 238,403 217,583 205,254 196,634 198,864 182,072 179,196
Total stockholders’ equity US$ in thousands 182,560 171,970 163,925 165,379 161,533 155,809 151,074 154,953 154,536 144,669 132,989 137,079 135,015 116,561 106,938 115,063 111,815 110,238 108,112 112,437
Financial leverage ratio 1.90 1.89 1.85 1.68 1.79 1.82 1.87 1.74 1.86 1.95 2.08 2.09 1.89 2.05 2.03 1.78 1.76 1.80 1.68 1.59

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 exhibited some fluctuations over the past few quarters. The ratio ranged from a low of 1.59 in Dec 2019 to a high of 2.09 in Mar 2022. Generally, the trend indicates an increasing leverage trend from 1.59 in Dec 2019 to 2.09 in Mar 2022, after which there was a slight decline.

A financial leverage ratio above 1 indicates that the company is relying more on debt to finance its operations rather than equity. A higher ratio suggests higher financial risk due to larger debt obligations.

Liquidity Services Inc's leverage ratio has generally been above 1, signaling that the company relies more on debt financing. Investors and creditors should monitor this ratio closely as high leverage could increase the company's financial risk and impact its ability to meet debt obligations in challenging economic conditions.