Seagate Technology PLC (STX)
Financial leverage ratio
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 7,739,000 | 7,556,000 | 8,944,000 | 8,675,000 | 8,930,000 |
| Total stockholders’ equity | US$ in thousands | -1,491,000 | -1,199,000 | 109,000 | 631,000 | 1,787,000 |
| Financial leverage ratio | — | — | 82.06 | 13.75 | 5.00 |
June 30, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $7,739,000K ÷ $-1,491,000K
= —
The financial leverage ratio of Seagate Technology PLC has shown a significant increase over the years, from 5.00 in June 30, 2020, to 13.75 in June 30, 2021, and further to 82.06 in June 30, 2022. However, there is missing data for the most recent years, as the values are indicated as '—' for June 30, 2023, and June 30, 2024.
The increasing trend in the financial leverage ratio indicates that Seagate Technology PLC has been relying more on debt to finance its operations and investments. A higher financial leverage ratio suggests that the company is taking on more debt relative to its equity, which can amplify returns in good times but also increase financial risk in challenging times.
It is important for investors and stakeholders to closely monitor the financial leverage ratio of the company to ensure that it is within manageable levels and does not jeopardize the financial stability and sustainability of Seagate Technology PLC.
Peer comparison
Jun 30, 2024