Mercury Systems Inc (MRCY)
Financial leverage ratio
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | -10,517 | 2,378,900 | 2,391,370 | 2,303,500 | 1,955,140 |
| Total stockholders’ equity | US$ in thousands | 1,473,460 | 1,472,780 | 1,566,680 | 1,537,180 | 1,484,150 |
| Financial leverage ratio | -0.01 | 1.62 | 1.53 | 1.50 | 1.32 |
June 30, 2025 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $-10,517K ÷ $1,473,460K
= -0.01
The financial leverage ratio of Mercury Systems Inc. has exhibited a generally upward trend over the observed period from June 30, 2021, through June 30, 2025. Specifically, the ratio increased from 1.32 in 2021 to 1.50 in 2022, indicating a moderate rise in the degree of financial leverage employed by the company during that year. The ratio further increased to 1.53 in 2023 and to 1.62 in 2024, demonstrating a continued, albeit gradual, increase in leverage levels.
However, in the subsequent period ending June 30, 2025, the financial leverage ratio sharply declined to a negative value of -0.01. This change suggests a significant transformation in the company's financial structure, likely indicative of a substantial reduction in debt relative to equity or potentially a reporting anomaly. The negative ratio is atypical and implies that the company's total equity exceeded its total liabilities, possibly due to debt repayment, restructuring, or other financial adjustments.
Overall, the pattern reflects a period of increasing leverage over the first four years, which may have been associated with strategic borrowing or financing activities. The abrupt negative shift in 2025 warrants further investigation to understand the underlying reasons and implications for the company's financial stability and risk profile.
Peer comparison
Jun 30, 2025