Maximus Inc (MMS)

Financial leverage ratio

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Total assets	US$ in thousands	4,131,510	3,985,800	3,992,710	4,118,960	2,024,700
Total stockholders’ equity	US$ in thousands	1,842,820	1,667,840	1,549,370	1,480,330	1,241,820
Financial leverage ratio		2.24	2.39	2.58	2.78	1.63

September 30, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $4,131,510K ÷ $1,842,820K
= 2.24

The financial leverage ratio, calculated as total assets divided by total equity, indicates the proportion of a company's assets that are financed by debt in relation to equity. A higher financial leverage ratio suggests that the company is relying more on debt to fund its operations and investments.

In the case of Maximus Inc, the financial leverage ratio has decreased from 2.78 in 2021 to 2.24 in 2024. This indicates a declining trend in the company's reliance on debt as a source of financing compared to equity. A lower financial leverage ratio can be seen as a positive indicator, as it implies reduced financial risk and improved financial stability.

The fluctuation in Maximus Inc's financial leverage ratio over the years may reflect changes in the company's capital structure, including shifts in debt levels and equity financing. It is essential for stakeholders to closely monitor these changes to assess the company's ability to meet its financial obligations and manage its debt effectively.