Mercury Systems Inc (MRCY)
Financial leverage ratio
| 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 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,378,900 | 2,378,180 | 2,436,250 | 2,400,760 | 2,391,370 | 2,383,870 | 2,347,950 | 2,349,040 | 2,304,420 | 2,259,840 | 2,230,770 | 1,965,090 | 1,955,140 | 1,903,320 | 1,949,170 | 1,653,180 | 1,610,720 | 1,771,640 | 1,512,620 | 1,473,850 |
| Total stockholders’ equity | US$ in thousands | 1,472,780 | 1,472,790 | 1,504,490 | 1,540,810 | 1,566,680 | 1,560,900 | 1,544,090 | 1,538,930 | 1,537,180 | 1,500,440 | 1,487,120 | 1,479,480 | 1,484,150 | 1,453,980 | 1,430,630 | 1,407,890 | 1,384,780 | 1,349,430 | 1,317,060 | 1,295,280 |
| Financial leverage ratio | 1.62 | 1.61 | 1.62 | 1.56 | 1.53 | 1.53 | 1.52 | 1.53 | 1.50 | 1.51 | 1.50 | 1.33 | 1.32 | 1.31 | 1.36 | 1.17 | 1.16 | 1.31 | 1.15 | 1.14 |
June 30, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,378,900K ÷ $1,472,780K
= 1.62
The financial leverage ratio of Mercury Systems Inc has shown a relatively stable trend over the past two years, ranging between 1.50 to 1.62. This ratio indicates that the company has been financing its operations with a mix of debt and equity, with a tendency towards slightly higher leverage in recent quarters.
The increasing trend in the financial leverage ratio from 1.32 in March 2021 to 1.62 in June 2024 suggests that the company has been taking on more debt relative to its equity. This may indicate a strategic decision to leverage the business to fund growth opportunities or investments.
It is important to monitor the financial leverage ratio closely to ensure that the company's debt levels are sustainable and manageable. An excessively high leverage ratio can indicate increased financial risk and potential difficulties in meeting debt obligations. Conversely, a low leverage ratio may suggest underutilization of debt for potential growth.
Overall, while the financial leverage ratio of Mercury Systems Inc has shown some fluctuations, staying within a relatively moderate range indicates a balanced capital structure approach.
Peer comparison
Jun 30, 2024