Qualys Inc (QLYS)

Financial leverage ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total assets	US$ in thousands	812,618	700,941	814,559	736,819	675,608
Total stockholders’ equity	US$ in thousands	368,174	289,129	436,714	404,482	386,803
Financial leverage ratio		2.21	2.42	1.87	1.82	1.75

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $812,618K ÷ $368,174K
= 2.21

The financial leverage ratio of Qualys Inc has shown fluctuating trends over the past five years. The ratio ranged from 1.75 in 2019 to 2.42 in 2022, with a noticeable increase during this period. However, by the end of 2023, the financial leverage ratio decreased to 2.21.

A financial leverage ratio above 1 indicates that the company relies more on debt to finance its operations than on equity. Therefore, an increasing trend in this ratio could signal an increasing financial risk as the company takes on more debt relative to its equity.

While the decreasing trend in the financial leverage ratio from 2022 to 2023 is a positive sign, it is essential to monitor this ratio closely. A high financial leverage ratio could indicate higher interest payments and potential liquidity issues in the future. Management should ensure a balanced capital structure to maintain financial stability and optimize the cost of capital.