Mercury Systems Inc (MRCY)
Debt-to-assets ratio
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 591,500 | 511,500 | 451,500 | 200,000 | 0 |
| Total assets | US$ in thousands | 2,378,900 | 2,391,370 | 2,304,420 | 1,955,140 | 1,610,720 |
| Debt-to-assets ratio | 0.25 | 0.21 | 0.20 | 0.10 | 0.00 |
June 30, 2024 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $591,500K ÷ $2,378,900K
= 0.25
The debt-to-assets ratio of Mercury Systems Inc has shown an increasing trend over the past five years. From 0.00 in 2020, the ratio has steadily climbed to 0.25 as of June 30, 2024. This indicates that the company's reliance on debt to finance its assets has been on the rise. While having some level of debt can be advantageous for a company to fuel growth and expansion, a higher debt-to-assets ratio could signify increased financial risk and potential vulnerability to economic downturns or interest rate fluctuations. It would be important for stakeholders to closely monitor this trend and assess the company's ability to manage and service its debt obligations effectively.
Peer comparison
Jun 30, 2024