Bio-Techne Corp (TECH)

Financial leverage ratio

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Total assets	US$ in thousands	2,703,870	2,638,690	2,294,800	2,262,960	2,027,590
Total stockholders’ equity	US$ in thousands	2,068,850	1,966,520	1,701,770	1,562,970	1,381,190
Financial leverage ratio		1.31	1.34	1.35	1.45	1.47

June 30, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,703,870K ÷ $2,068,850K
= 1.31

The financial leverage ratio of Bio-Techne Corp has shown a decreasing trend over the past five years, indicating a slight improvement in the company's ability to meet its financial obligations through equity rather than debt. The ratio decreased from 1.47 in Jun 30, 2020, to 1.31 in Jun 30, 2024. This suggests that the company has reduced its reliance on debt financing in its capital structure over the years, which could indicate a strengthening financial position and potentially less risk of default. However, it is important to note that a financial leverage ratio of above 1 indicates that the company has more debt than equity in its capital structure, which may pose risks in terms of financial stability and interest payment obligations. Further analysis of the company's debt levels and overall financial health would provide a more comprehensive understanding of its leverage position.