Manhattan Associates Inc (MANH)

Financial leverage ratio

		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	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Total assets	US$ in thousands	673,353	572,995	526,994	530,843	570,178	514,719	514,289	511,754	539,708	514,283	474,997	458,528	465,412	416,981	380,389	348,044	372,279	380,297	372,183	359,511
Total stockholders’ equity	US$ in thousands	278,278	210,105	170,550	181,072	226,800	198,134	208,735	217,136	250,644	238,627	212,450	204,660	218,897	187,977	152,778	125,869	142,278	151,650	154,687	145,400
Financial leverage ratio		2.42	2.73	3.09	2.93	2.51	2.60	2.46	2.36	2.15	2.16	2.24	2.24	2.13	2.22	2.49	2.77	2.62	2.51	2.41	2.47

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $673,353K ÷ $278,278K
= 2.42

The financial leverage ratio of Manhattan Associates, Inc. has shown some fluctuations over the past eight quarters, ranging from 2.36 to 3.09. The ratio indicates that in Q4 2023, the company had a financial leverage of 2.42, which suggests that for every dollar of equity, Manhattan Associates had $2.42 of debt.

The trend over the past year shows an increase in the financial leverage ratio, peaking at 3.09 in Q2 2023 before slightly decreasing in the following quarters. A higher financial leverage ratio can indicate that the company is relying more on debt to finance its operations and growth, which can magnify returns in good times but also potentially increase risks during economic downturns.

It is important for investors and stakeholders to closely monitor the financial leverage ratio of Manhattan Associates, Inc. to assess the company's risk exposure and financial health, especially in times of economic uncertainty.