Sonos Inc (SONO)
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 | 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 | 761,605 |
| Total stockholders’ equity | US$ in thousands | 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 | 280,928 |
| Financial leverage ratio | 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 | 2.71 |
June 30, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $961,105K ÷ $464,391K
= 2.07
The financial leverage ratio of Sonos Inc has shown some variability over the past few quarters, ranging from a low of 1.73 to a high of 2.74. The ratio indicates that, on average, the company's assets are financed by around 1.87 to 2.47 times its equity.
A higher financial leverage ratio suggests that the company relies more on debt to finance its operations and growth, which can potentially amplify returns for shareholders when operations are performing well. However, it also indicates higher financial risk, as higher debt levels can lead to increased interest payments and financial vulnerability during economic downturns.
Conversely, a lower financial leverage ratio implies a more conservative capital structure with less financial risk but may also limit potential returns for shareholders.
It is important for stakeholders to closely monitor changes in the financial leverage ratio over time, as significant fluctuations could indicate changes in the company's capital structure and financial risk profile.
Peer comparison
Jun 30, 2024