ScanSource Inc (SCSC)
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 | 1,779,030 | 1,782,990 | 1,780,800 | 1,898,540 | 2,068,170 | 1,980,380 | 2,130,530 | 2,000,310 | 1,937,430 | 1,840,800 | 1,770,870 | 1,697,350 | 1,671,680 | 1,582,620 | 1,597,120 | 1,733,340 | 1,692,090 | 2,073,800 | 2,210,130 | 2,218,520 |
| Total stockholders’ equity | US$ in thousands | 924,255 | 944,051 | 953,601 | 915,253 | 905,298 | 878,895 | 862,386 | 827,004 | 806,528 | 806,654 | 768,525 | 746,094 | 731,191 | 690,575 | 682,139 | 671,227 | 678,246 | 897,678 | 927,580 | 905,751 |
| Financial leverage ratio | 1.92 | 1.89 | 1.87 | 2.07 | 2.28 | 2.25 | 2.47 | 2.42 | 2.40 | 2.28 | 2.30 | 2.27 | 2.29 | 2.29 | 2.34 | 2.58 | 2.49 | 2.31 | 2.38 | 2.45 |
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 some fluctuations over the past few quarters, ranging from 1.87 to 2.58. The ratio indicates the company's reliance on debt financing to support its operations and growth initiatives. A higher financial leverage ratio suggests higher financial risk due to increased debt levels, which can impact the company's ability to meet its financial obligations.
ScanSource Inc experienced a peak in its financial leverage ratio in the third quarter of 2020, followed by a decline in the subsequent quarters. However, the ratio started to increase again in the first quarter of 2023 and peaked in the second quarter of 2023 before showing some fluctuations in recent periods.
Overall, the company's financial leverage ratio has been above 2.0 for most of the periods, indicating a significant reliance on debt financing. Investors and stakeholders should closely monitor the trend of this ratio to assess the company's ability to manage its debt levels and financial risks effectively.
Peer comparison
Jun 30, 2024