ScanSource Inc (SCSC)
Financial leverage ratio
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,779,030 | 2,068,170 | 1,937,430 | 1,671,680 | 1,692,090 |
| Total stockholders’ equity | US$ in thousands | 924,255 | 905,298 | 806,528 | 731,191 | 678,246 |
| Financial leverage ratio | 1.92 | 2.28 | 2.40 | 2.29 | 2.49 |
June 30, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,779,030K ÷ $924,255K
= 1.92
The financial leverage ratio of ScanSource Inc has shown a declining trend over the past five years, decreasing from 2.49 in 2020 to 1.92 in 2024. This indicates that the company's reliance on debt to finance its operations has been decreasing. A lower financial leverage ratio suggests a lower level of financial risk for the company as it indicates a lower proportion of debt in its capital structure compared to equity. However, it is important to note that a very low financial leverage ratio could also imply missed opportunities for leveraging debt to potentially increase returns for shareholders. Overall, the decreasing trend in the financial leverage ratio of ScanSource Inc may reflect a more conservative approach to capital structure management.
Peer comparison
Jun 30, 2024