Pegasystems Inc (PEGA)
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 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,321,950 | 1,768,270 | 1,579,230 | 1,536,530 | 1,511,730 | 1,510,740 | 1,222,530 | 1,192,440 | 1,281,840 | 1,357,670 | 1,166,460 | 1,258,380 | 1,538,480 | 1,593,530 | 1,555,400 | 1,602,570 | 1,528,500 | 1,604,260 | 1,487,330 | 1,496,280 |
| Total stockholders’ equity | US$ in thousands | 611,269 | 585,480 | 473,023 | 435,402 | 390,186 | 353,838 | 167,636 | 145,396 | 154,496 | 130,843 | 64,961 | 133,779 | 406,668 | 416,088 | 459,632 | 522,468 | 478,925 | 542,172 | 529,322 | 556,282 |
| Financial leverage ratio | 2.16 | 3.02 | 3.34 | 3.53 | 3.87 | 4.27 | 7.29 | 8.20 | 8.30 | 10.38 | 17.96 | 9.41 | 3.78 | 3.83 | 3.38 | 3.07 | 3.19 | 2.96 | 2.81 | 2.69 |
March 31, 2025 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,321,950K ÷ $611,269K
= 2.16
The financial leverage ratio of Pegasystems Inc. exhibits significant fluctuations over the analyzed period. From June 30, 2020, to March 31, 2021, the ratio showed a gradual upward trend, increasing from 2.69 to 3.19, indicating a moderate rise in leverage levels. This period reflects a relatively steady increase in the company's use of debt relative to equity.
Between June 30, 2021, and December 31, 2021, the ratio continued to strengthen, reaching a peak of 3.83, suggesting an increasing reliance on debt financing during this time. The trend accelerated sharply between March 31, 2022, and September 30, 2022, with the ratio escalating from 3.78 to an extraordinary 17.96, signifying a substantial leap in leverage. This spike indicates a period where the company significantly increased its debt levels relative to equity, which could be attributable to strategic financing decisions or potentially increased financial risk.
Post-September 2022, the leverage ratio demonstrated a downward trajectory, decreasing to 10.38 by December 2022 and further declining to 8.30 by March 2023. This reduction reflects efforts to deleverage or a decline in debt levels relative to equity, possibly indicating resilience or a shift in financial strategy. The decline persisted into subsequent quarters, with ratios of 8.20 (June 2023), 7.29 (September 2023), and 4.27 (December 2023), demonstrating a consistent trend of decreasing leverage over time.
Continuing into 2024, the leverage ratio maintained its downward trend, reaching 3.87 in March 2024, 3.53 in June 2024, and 3.34 in September 2024. By the end of 2024, the ratio stood at 3.02, indicating a stabilization at a relatively moderate leverage level. The forecasted data for March 2025 shows further reduction, with an anticipated ratio of 2.16, suggesting ongoing deleveraging.
Overall, Pegasystems Inc.'s financial leverage ratio has experienced a pronounced peak in late 2022, followed by a steady decline, reflecting a transition from a period of high leverage to a more prudent or stable financial structure.
Peer comparison
Mar 31, 2025