Manhattan Associates Inc (MANH)

Financial leverage ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Total assets US$ in thousands 757,551 673,353 570,178 539,708 465,412
Total stockholders’ equity US$ in thousands 299,126 278,278 226,800 250,644 218,897
Financial leverage ratio 2.53 2.42 2.51 2.15 2.13

December 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $757,551K ÷ $299,126K
= 2.53

The financial leverage ratio of Manhattan Associates Inc has shown a general increasing trend over the years, starting at 2.13 in December 2020 and reaching its peak at 2.53 by December 2024. This indicates that the company's reliance on debt to finance its operations has been steadily rising. A higher financial leverage ratio suggests a greater proportion of debt in the company's capital structure compared to equity, which could potentially lead to higher financial risk. It is important for stakeholders to monitor this ratio closely to assess the company's ability to meet its debt obligations and manage its financial health effectively.