Sonos Inc (SONO)
Financial leverage ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 916,312 | 1,002,240 | 1,188,390 | 1,138,800 | 816,051 |
| Total stockholders’ equity | US$ in thousands | 428,620 | 518,657 | 560,513 | 569,042 | 297,839 |
| Financial leverage ratio | 2.14 | 1.93 | 2.12 | 2.00 | 2.74 |
September 30, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $916,312K ÷ $428,620K
= 2.14
The financial leverage ratio of Sonos Inc has experienced fluctuations over the past five years. The ratio was 2.74 in 2020, decreased to 2.00 in 2021, increased to 2.12 in 2022, further increased to 1.93 in 2023, and then rose again to 2.14 in 2024.
A higher financial leverage ratio indicates that the company relies more on debt to finance its operations and growth, which can magnify returns to shareholders but also increase financial risk. Conversely, a lower ratio suggests a lower level of debt financing relative to equity.
Sonos Inc's financial leverage ratio has shown variability, with a peak in 2020 and a subsequent decrease in 2021, followed by fluctuations in the following years. It is important for investors and stakeholders to monitor changes in the financial leverage ratio to assess the company's risk profile and financial health.
Peer comparison
Sep 30, 2024