Maximus Inc (MMS)

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	4,131,510	3,999,790	4,041,140	4,016,860	3,985,800	3,943,180	3,898,860	4,234,920	3,992,710	4,057,920	4,107,700	4,181,870	4,118,960	4,370,590	2,441,400	2,066,230	2,024,700	2,062,990	1,960,410	1,989,790
Total stockholders’ equity	US$ in thousands	1,842,820	1,818,720	1,789,140	1,717,810	1,667,840	1,632,850	1,601,720	1,581,010	1,549,370	1,521,560	1,554,220	1,528,430	1,480,330	1,453,450	1,369,900	1,298,310	1,241,820	1,194,950	1,138,470	1,299,000
Financial leverage ratio		2.24	2.20	2.26	2.34	2.39	2.41	2.43	2.68	2.58	2.67	2.64	2.74	2.78	3.01	1.78	1.59	1.63	1.73	1.72	1.53

September 30, 2024 calculation

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

The financial leverage ratio of Maximus Inc has fluctuated over the past few years, ranging from a low of 1.53 to a high of 3.01. This ratio measures the extent to which the company is using debt to finance its operations and growth.

A higher financial leverage ratio indicates that a company is relying more on debt to fund its operations, while a lower ratio indicates a greater reliance on equity. Maximus Inc's financial leverage ratio has generally been on the higher side, with a recent peak in the last few quarters.

The upward trend in the financial leverage ratio from 2021 to 2023 suggests that Maximus Inc may have increased its debt levels relative to equity during this period. A ratio above 2 indicates that the company has more debt than equity in its capital structure.

It is important to note that a high financial leverage ratio can indicate increased financial risk, as higher levels of debt can lead to higher interest payments and potential solvency issues in the event of financial downturns. Therefore, investors and stakeholders should closely monitor Maximus Inc's debt levels and its ability to manage and service its debt in the long term.