QuinStreet Inc (QNST)
Financial leverage ratio
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 368,546 | 337,155 | 419,909 | 449,515 | 358,407 |
| Total stockholders’ equity | US$ in thousands | 216,825 | 229,801 | 286,000 | 295,148 | 255,944 |
| Financial leverage ratio | 1.70 | 1.47 | 1.47 | 1.52 | 1.40 |
June 30, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $368,546K ÷ $216,825K
= 1.70
The financial leverage ratio of QuinStreet Inc has been fluctuating over the past five years. The ratio indicates the level of debt used by the company to finance its operations relative to its equity. A higher financial leverage ratio suggests that the company relies more on debt to fund its activities.
In this case, we can observe that the financial leverage ratio has increased from 1.40 in June 2020 to 1.70 in June 2024. This suggests that over the years, QuinStreet Inc has been taking on more debt compared to its equity. While a higher leverage ratio can amplify returns, it also increases the financial risk as the company has higher debt obligations to fulfill.
It is important for investors and stakeholders to closely monitor the financial leverage ratio of QuinStreet Inc to assess the company's ability to manage its debt levels and evaluate its financial health and risk profile. Additionally, changes in the ratio over time can provide insights into the company's financial strategy and relevant market conditions.
Peer comparison
Jun 30, 2024