Maximus Inc (MMS)

Debt-to-assets ratio

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Long-term debt	US$ in thousands	1,091,950	1,163,150	1,292,480	1,429,140	18,017
Total assets	US$ in thousands	4,131,510	3,985,800	3,992,710	4,118,960	2,024,700
Debt-to-assets ratio		0.26	0.29	0.32	0.35	0.01

September 30, 2024 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $1,091,950K ÷ $4,131,510K
= 0.26

The trend in Maximus Inc's debt-to-assets ratio over the past five years shows a general decrease from 0.35 in 2021 to 0.26 in 2024. This indicates that the company's reliance on debt relative to its total assets has been on a downward trajectory. A lower debt-to-assets ratio suggests a lower financial risk and a healthier financial position, as it implies that the company is financing a smaller portion of its assets through debt. It also indicates a higher proportion of assets financed by equity or retained earnings.

The significant drop in the debt-to-assets ratio from 0.35 in 2021 to 0.01 in 2022 is noteworthy and could be a result of various factors, such as reduced borrowing, increased asset base, or debt repayment. This sudden change may require further investigation to understand the specific drivers behind it.

Overall, the decreasing trend in Maximus Inc's debt-to-assets ratio indicates that the company has been managing its debt levels effectively and potentially strengthening its financial stability over the years. However, it is essential to continue monitoring this ratio along with other financial metrics to assess the company's overall financial health and risk profile.