N-Able Inc (NABL)
Financial leverage ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,162,790 | 1,122,660 | 1,113,040 | 1,092,580 | 1,078,860 | 1,031,460 | 1,038,770 | 1,050,160 |
| Total stockholders’ equity | US$ in thousands | 711,360 | 674,680 | 668,907 | 656,195 | 642,071 | 594,132 | 605,994 | 618,556 |
| Financial leverage ratio | 1.63 | 1.66 | 1.66 | 1.67 | 1.68 | 1.74 | 1.71 | 1.70 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,162,790K ÷ $711,360K
= 1.63
The financial leverage ratio of N-Able Inc has shown a slight fluctuation over the past few quarters. The ratio has been relatively stable around the range of 1.63 to 1.74, indicating that the company relies moderately on debt to finance its operations and investments. A financial leverage ratio above 1 suggests that the company has more debt than equity in its capital structure.
The downward trend from 1.72 in June 2021 to 1.63 in December 2023 may indicate that the company has been reducing its reliance on debt financing or increasing its equity base during this period. A lower financial leverage ratio can imply a lower risk of financial distress and greater financial stability. However, it can also indicate a lower potential return on equity as less debt is being used to amplify profits.
Overall, the trend in N-Able Inc's financial leverage ratio suggests a prudent approach to managing its capital structure, balancing the benefits and risks associated with debt financing. Monitoring this ratio over time can provide insights into the company's financial health and risk profile.
Peer comparison
Dec 31, 2023