Liveramp Holdings Inc (RAMP)

Financial leverage ratio

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Total assets	US$ in thousands	1,231,440	1,172,700	1,333,740	1,288,320	1,301,890
Total stockholders’ equity	US$ in thousands	949,135	926,076	1,063,060	1,080,680	1,087,510
Financial leverage ratio		1.30	1.27	1.25	1.19	1.20

March 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,231,440K ÷ $949,135K
= 1.30

Liveramp Holdings Inc's financial leverage ratio has shown a consistent upward trend over the past five years, increasing from 1.20 in March 2020 to 1.30 in March 2024. This indicates that the company has been gradually relying more on debt financing relative to equity financing. A financial leverage ratio of 1.30 in March 2024 implies that the company's total assets are funded by 1.30 times its total equity.

The increasing trend in the financial leverage ratio may suggest that Liveramp Holdings Inc has been taking on more debt to fund its operations or growth initiatives. While higher leverage can potentially amplify returns on equity when the company is performing well, it also raises the company's financial risk and vulnerability to economic downturns or interest rate fluctuations.

It is essential for stakeholders to closely monitor Liveramp Holdings Inc's financial leverage ratio and its implications on the company's financial health and stability. High leverage levels could indicate a higher risk of financial distress, particularly if the company struggles to generate sufficient earnings to cover interest expenses or repay its debt obligations.