QuinStreet Inc (QNST)
Financial leverage ratio
| 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 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 368,546 | 349,251 | 320,917 | 320,965 | 337,155 | 412,479 | 391,893 | 405,527 | 419,909 | 433,763 | 427,591 | 441,933 | 449,515 | 442,495 | 415,057 | 417,112 | 358,407 | 360,512 | 339,404 | 342,258 |
| Total stockholders’ equity | US$ in thousands | 216,825 | 214,964 | 215,253 | 222,336 | 229,801 | 284,527 | 279,796 | 283,256 | 286,000 | 301,463 | 298,645 | 299,695 | 295,148 | 288,567 | 279,406 | 273,288 | 255,944 | 249,207 | 233,871 | 228,091 |
| Financial leverage ratio | 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 | 1.40 | 1.45 | 1.45 | 1.50 |
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 shown some fluctuations over the past few quarters, ranging from 1.40 to 1.70. This ratio indicates the level of debt a company uses to finance its assets relative to its equity. A higher ratio suggests a higher level of financial leverage and potential risk.
Looking at the trend, there appears to be an overall increasing pattern in the financial leverage ratio from 1.40 in Dec 2020 to 1.70 in Jun 2024. This could indicate that QuinStreet Inc has been relying more on debt financing over time.
While a higher financial leverage ratio can amplify returns when the company is performing well, it also exposes the company to higher financial risk, especially during challenging economic conditions or if the company faces difficulties in meeting its debt obligations.
It would be important for stakeholders, including investors and creditors, to closely monitor QuinStreet Inc's financial leverage ratio and assess the company's ability to manage its debt levels effectively to ensure financial stability and sustainable growth in the long term.
Peer comparison
Jun 30, 2024