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	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021
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	1,055,700	1,062,560	1,038,790
Total stockholders’ equity	US$ in thousands	711,360	674,680	668,907	656,195	642,071	594,132	605,994	618,556	618,355	617,907	633,275
Financial leverage ratio		1.63	1.66	1.66	1.67	1.68	1.74	1.71	1.70	1.71	1.72	1.64

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.