QuinStreet Inc (QNST)

Financial leverage ratio

Jun 30, 2025 Mar 31, 2025 Dec 31, 2024 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
Total assets US$ in thousands 431,107 417,235 409,647 401,172 368,546 349,251 320,917 320,965 337,155 412,479 391,893 405,527 419,909 433,763 427,591 441,933 449,917 442,495 415,057 417,112
Total stockholders’ equity US$ in thousands 244,044 235,475 224,252 219,818 216,825 214,964 215,253 222,336 229,801 284,527 279,796 283,256 286,000 301,463 298,645 299,695 295,550 288,567 279,406 273,288
Financial leverage ratio 1.77 1.77 1.83 1.83 1.70 1.62 1.49 1.44 1.47 1.45 1.40 1.43 1.47 1.44 1.43 1.47 1.52 1.53 1.49 1.53

June 30, 2025 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $431,107K ÷ $244,044K
= 1.77

The financial leverage ratio of QuinStreet Inc over the period from September 2020 to June 2025 demonstrates a general trend of moderate fluctuation, indicating a relatively stable level of financial leverage with some periods of increase. Initially, the ratio remained close to 1.5, with minor variations around 1.49 to 1.53, suggesting a consistent balance between debt and equity during this period.

Between September 2021 and December 2022, the ratio exhibited slight declines, reaching a low of approximately 1.40, which may point to a period of decreased reliance on leverage or an increase in equity relative to debt. From the beginning of 2023 onward, the ratio shows a gradual upward trend, reaching around 1.70 by June 2024, and further increasing to 1.83 by September 2024 and December 2024. This escalation indicates an increasing degree of financial leverage, implying heavier reliance on debt financing, which could be associated with expansion activities or refinancing strategies.

Despite the upward trend in recent periods, the ratios remain below 2.0, suggesting that QuinStreet Inc maintains a moderate leverage profile, generally not exposing the company to excessive financial risk. The latest data indicates that the company’s leverage has risen notably from the relatively stable levels of prior years, but it still falls within a manageable range from a financial risk perspective. Overall, the financial leverage ratio reveals periods of stability interspersed with gradual increases, reflecting strategic shifts in capital structure that warrant monitoring for potential implications on the company's risk profile and creditworthiness.