Sonos Inc (SONO)
Financial leverage ratio
| Sep 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 916,312 | 961,105 | 925,615 | 1,109,990 | 1,002,240 | 1,065,220 | 1,059,250 | 1,206,880 | 1,188,390 | 1,243,230 | 1,226,230 | 1,372,740 | 1,138,800 | 1,084,100 | 1,048,290 | 1,066,860 | 816,051 | 644,628 | 639,175 | 873,929 |
| Total stockholders’ equity | US$ in thousands | 428,620 | 464,391 | 494,004 | 594,409 | 518,657 | 590,210 | 612,914 | 633,354 | 560,513 | 642,736 | 671,684 | 679,607 | 569,042 | 587,127 | 579,268 | 510,209 | 297,839 | 261,199 | 299,804 | 367,279 |
| Financial leverage ratio | 2.14 | 2.07 | 1.87 | 1.87 | 1.93 | 1.80 | 1.73 | 1.91 | 2.12 | 1.93 | 1.83 | 2.02 | 2.00 | 1.85 | 1.81 | 2.09 | 2.74 | 2.47 | 2.13 | 2.38 |
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 shown some fluctuation over the past few quarters, ranging from 1.73 to 2.74. The ratio measures the company's level of debt relative to its equity, indicating the extent to which the firm relies on debt financing.
From the data provided, we observe that the financial leverage ratio has generally been above 2 in recent quarters, suggesting that Sonos Inc has been relying more on debt to finance its operations and growth. This can pose risks, as a higher financial leverage ratio indicates higher financial risk due to increased debt levels.
It is important to note that a high financial leverage ratio can amplify returns on equity in favorable situations but can also magnify losses in times of financial distress or economic downturns. Thus, investors and analysts should closely monitor Sonos Inc's financial leverage ratio along with other key financial metrics to assess the company's overall financial health and risk profile.
Peer comparison
Sep 30, 2024