Qorvo Inc (QRVO)
Financial leverage ratio
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 5,933,130 | 6,554,640 | 6,691,900 | 7,509,070 | 7,221,470 |
| Total stockholders’ equity | US$ in thousands | 3,392,310 | 3,556,370 | 3,902,790 | 4,553,220 | 4,629,420 |
| Financial leverage ratio | 1.75 | 1.84 | 1.71 | 1.65 | 1.56 |
March 31, 2025 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $5,933,130K ÷ $3,392,310K
= 1.75
The financial leverage ratio of Qorvo Inc has been gradually increasing over the past five years, indicating a trend towards higher financial leverage. As of March 31, 2021, the ratio stood at 1.56, and it has risen steadily to reach 1.75 by March 31, 2025. This suggests that the company is relying more on debt financing relative to equity in its capital structure. An increasing leverage ratio can imply higher financial risk for the company, as it signifies a greater dependence on debt to fund its operations and investments. It may be beneficial for stakeholders to closely monitor Qorvo Inc's financial leverage ratio to assess its ability to manage debt levels effectively and maintain financial stability.
Peer comparison
Mar 31, 2025