OSI Systems Inc (OSIS)

Financial leverage ratio

		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	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019
Total assets	US$ in thousands	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	1,443,150	1,384,370	1,325,960	1,300,800	1,270,950	1,268,540	1,286,590	1,301,930	1,290,100
Total stockholders’ equity	US$ in thousands	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	572,152	552,276	557,716	541,564
Financial leverage ratio		2.24	2.25	2.24	2.19	2.14	2.22	2.26	2.35	2.26	2.36	2.33	2.32	2.16	2.15	2.21	2.28	2.22	2.33	2.33	2.38

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 displayed fluctuations over the past several quarters. The ratio has ranged between 2.14 and 2.38 during the period from December 2019 to June 2024. The ratio peaked at 2.38 in the second quarter of 2022 and touched its lowest point at 2.14 in the third quarter of 2023. Overall, the average financial leverage ratio over this period stands at approximately 2.25.

A financial leverage ratio of over 2 indicates that the company relies more on debt financing than equity financing to support its operations and growth. A higher financial leverage ratio implies higher financial risk due to increased debt levels that need to be serviced. It is essential for investors and stakeholders to monitor changes in the financial leverage ratio to assess the company's ability to manage its debt obligations and maintain financial stability.