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.
Peer comparison
Dec 31, 2023