Nextracker Inc. Class A Common Stock (NXT)

Financial leverage ratio

		Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	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
Total assets	US$ in thousands	3,192,520	2,983,560	2,768,660	2,626,930	2,518,780	2,095,120	2,033,560	1,656,870	1,419,680	1,259,700	1,287,760	1,129,500	1,017,290	1,017,290	944,915	976,958	880,969
Total stockholders’ equity	US$ in thousands	1,628,130	1,406,550	1,266,000	1,121,390	992,028	-3,117,010	-2,641,020	-3,352,380	-3,075,770	96,258	86,400	527,119	-3,035	-3,035	463,578	508,028	456,047
Financial leverage ratio		1.96	2.12	2.19	2.34	2.54	—	—	—	—	13.09	14.90	2.14	—	—	2.04	1.92	1.93

March 31, 2025 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,192,520K ÷ $1,628,130K
= 1.96

The financial leverage ratio of Nextracker Inc. Class A Common Stock has exhibited some fluctuations over the period of March 31, 2021, to March 31, 2025. The ratio indicates the extent to which the company utilizes debt to finance its operations and growth.

From March 31, 2021, to June 30, 2022, the financial leverage ratio remained relatively stable, ranging between 1.92 and 2.14, signaling a moderate level of leverage. However, a significant spike was observed by September 30, 2022, and December 31, 2022, reaching 14.90 and 13.09, respectively. Such a sharp increase in leverage may raise concerns about the company's financial risk and ability to meet its debt obligations.

Subsequently, the financial leverage ratio showed a declining trend from March 31, 2023, to December 31, 2024, fluctuating between 1.96 and 2.54. This reduction in leverage suggests a potential strategy by the company to deleverage and reduce its dependency on debt financing.

Overall, while the financial leverage ratio has experienced fluctuations over the given period, careful monitoring is necessary to assess the company's financial health and risk management strategies. High levels of leverage could indicate increased financial risk, whereas lower levels may imply a more conservative capital structure.