PTC Inc (PTC)
Financial leverage ratio
| 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 | Mar 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 6,383,540 | 6,128,140 | 6,205,260 | 6,271,160 | 6,288,840 | 6,207,650 | 6,299,620 | 4,795,770 | 4,687,270 | 4,605,540 | 4,378,520 | 4,420,620 | 4,507,560 | 4,206,220 | 4,181,220 | 3,448,890 | 3,382,740 | 3,376,170 | 3,866,470 | 3,279,830 |
| Total stockholders’ equity | US$ in thousands | 3,214,400 | 3,014,680 | 2,943,130 | 2,806,650 | 2,677,290 | 2,598,660 | 2,518,530 | 2,400,550 | 2,296,030 | 2,157,170 | 2,083,980 | 1,953,810 | 2,038,470 | 1,724,960 | 1,650,530 | 1,494,930 | 1,438,250 | 1,327,570 | 1,274,080 | 1,247,820 |
| Financial leverage ratio | 1.99 | 2.03 | 2.11 | 2.23 | 2.35 | 2.39 | 2.50 | 2.00 | 2.04 | 2.13 | 2.10 | 2.26 | 2.21 | 2.44 | 2.53 | 2.31 | 2.35 | 2.54 | 3.03 | 2.63 |
September 30, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $6,383,540K ÷ $3,214,400K
= 1.99
The financial leverage ratio of PTC Inc has been fluctuating over the periods presented in the table, ranging from 1.99 to 3.03. The ratio indicates the degree to which the company is using debt to finance its operations and investments. A higher ratio suggests that a larger portion of the company's assets is funded by debt rather than equity.
The trend in PTC Inc's financial leverage ratio shows an overall increase over time, indicating a more aggressive use of debt to finance its activities. This could be a strategic choice to benefit from tax shield advantages and potentially lower the cost of capital, but it also increases the financial risk of the company.
It is essential for stakeholders to monitor the financial leverage ratio to assess the company's risk profile and financial stability. A consistently high ratio may increase the company's vulnerability to economic downturns or changes in interest rates, making it important for management to balance the benefits and risks associated with leveraging.
Peer comparison
Sep 30, 2024