OSI Systems Inc (OSIS)

Financial leverage ratio

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Total assets	US$ in thousands	1,936,010	1,555,690	1,443,150	1,384,370	1,268,540
Total stockholders’ equity	US$ in thousands	863,483	726,165	638,424	639,820	572,152
Financial leverage ratio		2.24	2.14	2.26	2.16	2.22

June 30, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,936,010K ÷ $863,483K
= 2.24

The financial leverage ratio of OSI Systems Inc has shown some fluctuation over the past five years. The ratio has ranged from 2.14 to 2.26 during this period, with the latest value standing at 2.24 as of June 30, 2024.

A financial leverage ratio above 1 indicates that the company relies more on debt financing than equity financing. OSI Systems Inc's average leverage ratio of around 2.2 suggests that the company has a considerable amount of debt relative to its equity.

The upward trend in the financial leverage ratio from 2020 to 2022 indicates an increase in the company's debt relative to its equity during those years. However, this trend was followed by a slight decrease in 2023, before rising again in 2024.

It is essential for investors and stakeholders to closely monitor the financial leverage ratio of OSI Systems Inc, as high levels of leverage can indicate increased financial risk and potential challenges in servicing debt obligations.