Shutterstock (SSTK)

Financial leverage ratio

		Dec 31, 2024	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
Total assets	US$ in thousands	1,309,160	1,348,840	1,003,870	1,028,500	1,036,020	1,015,920	1,004,260	842,523	881,184	840,180	848,568	795,978	851,710	841,177	795,852	755,144	729,644	688,282	626,331	614,965
Total stockholders’ equity	US$ in thousands	518,350	522,915	520,412	541,275	527,094	531,963	519,507	476,534	447,482	430,583	429,093	444,423	468,482	474,896	465,334	440,504	421,925	390,240	343,500	327,727
Financial leverage ratio		2.53	2.58	1.93	1.90	1.97	1.91	1.93	1.77	1.97	1.95	1.98	1.79	1.82	1.77	1.71	1.71	1.73	1.76	1.82	1.88

December 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,309,160K ÷ $518,350K
= 2.53

The financial leverage ratio of Shutterstock has fluctuated over the years, starting at 1.88 as of March 31, 2020, and ending at 2.53 as of December 31, 2024. The ratio indicates the company's reliance on debt financing to fund its operations and investments.

A higher financial leverage ratio suggests that the company is using more debt relative to its equity, which can potentially magnify returns but also increase financial risk. Conversely, a lower ratio indicates a more conservative capital structure with less dependence on debt financing.

The trend of increasing financial leverage ratio from 2020 to 2024 could signal that Shutterstock has been taking on more debt over time, possibly to support growth initiatives or manage cash flow. Investors and stakeholders should closely monitor this ratio to assess the company's ability to meet its debt obligations and sustain its financial health in the long run.