Qualys Inc (QLYS)

Financial leverage ratio

		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	Jun 30, 2019	Mar 31, 2019
Total assets	US$ in thousands	812,618	751,861	709,584	675,753	700,941	747,631	789,011	814,550	814,559	756,180	737,305	729,942	736,819	707,084	707,015	684,492	675,608	625,924	645,612	636,141
Total stockholders’ equity	US$ in thousands	368,174	322,917	277,018	267,822	289,129	355,186	396,838	426,635	436,714	402,986	392,995	397,108	404,482	400,299	407,774	386,730	386,803	361,023	383,598	373,403
Financial leverage ratio		2.21	2.33	2.56	2.52	2.42	2.10	1.99	1.91	1.87	1.88	1.88	1.84	1.82	1.77	1.73	1.77	1.75	1.73	1.68	1.70

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 been fluctuating over the past several quarters, ranging from 1.91 to 2.56. The trend shows an overall increase in leverage, with the ratio peaking in Q2 2023 at 2.56. This indicates that the company is relying more on debt to finance its operations and growth.

A higher financial leverage ratio suggests that Qualys Inc has a higher proportion of debt in its capital structure compared to equity. While leverage can amplify returns when the business is performing well, it also increases the financial risk as the company becomes more vulnerable to economic downturns or changes in interest rates.

Investors and stakeholders should closely monitor Qualys Inc's financial leverage ratio to assess the company's ability to manage its debt obligations effectively and maintain a healthy balance between debt and equity financing. A sustained increase in the ratio may indicate a heightened risk of financial distress or constraints on future growth opportunities.