OSI Systems Inc (OSIS)

Financial leverage ratio

		Jun 30, 2025	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	Dec 31, 2020	Sep 30, 2020
Total assets	US$ in thousands	2,241,260	2,081,000	2,130,910	2,113,510	1,936,010	1,831,080	1,726,480	1,588,450	1,555,690	1,483,300	1,466,230	1,467,770	1,443,150	1,459,090	1,443,110	1,410,640	1,384,370	1,325,960	1,300,800	1,270,950
Total stockholders’ equity	US$ in thousands	951,084	879,325	825,830	786,495	863,483	813,413	770,443	724,457	726,165	666,917	647,754	624,653	638,424	618,494	620,148	623,312	639,820	615,893	587,636	557,540
Financial leverage ratio		2.36	2.37	2.58	2.69	2.24	2.25	2.24	2.19	2.14	2.22	2.26	2.35	2.26	2.36	2.33	2.26	2.16	2.15	2.21	2.28

June 30, 2025 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,241,260K ÷ $951,084K
= 2.36

The financial leverage ratio of OSI Systems Inc exhibits relatively minor fluctuations over the analyzed period from September 30, 2020, to June 30, 2025. Initially, at 2.28 in September 2020, the ratio shows a slight decline reaching a low of approximately 2.14 by June 2023, indicating a modest reduction in leverage and potentially less reliance on debt financing over that period. Subsequently, the ratio demonstrates an upward trend, peaking at 2.69 on September 30, 2024, which suggests an increase in the company's use of debt relative to equity. This increase in leverage could imply strategic financing decisions, possibly to fund expansion, acquisitions, or other growth initiatives. After reaching this peak, the ratio declines again to about 2.37 by March 2025, indicating a partial reduction in leverage.

Overall, the data reflects a pattern of moderate variation within a narrow range, roughly from 2.14 to 2.69, indicating that the company maintains a consistent level of financial leverage, with periods of both slight deleveraging and increasing leverage. These fluctuations suggest a balanced approach to managing debt relative to equity, likely aimed at optimizing capital structure while retaining financial stability.