Thryv Holdings Inc (THRY)
Financial leverage ratio
| 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 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 783,170 | 1,040,380 | 1,101,230 | 1,172,270 | 1,177,880 | 1,289,880 | 1,320,330 | 1,369,720 | 1,300,500 | 1,377,490 | 1,412,140 | 1,544,480 | 1,214,980 | 1,214,050 | — | 1,353,800 | 1,388,290 | 1,237,050 | 1,307,300 | 1,688,670 |
| Total stockholders’ equity | US$ in thousands | 152,700 | 397,096 | 404,326 | 395,053 | 382,267 | 421,926 | 411,614 | 356,441 | 314,715 | 304,445 | 269,703 | 229,196 | 196,775 | 36,855 | — | 33,892 | 27,260 | -119,679 | -142,931 | 270,694 |
| Financial leverage ratio | 5.13 | 2.62 | 2.72 | 2.97 | 3.08 | 3.06 | 3.21 | 3.84 | 4.13 | 4.52 | 5.24 | 6.74 | 6.17 | 32.94 | — | 39.94 | 50.93 | — | — | 6.24 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $783,170K ÷ $152,700K
= 5.13
Thryv Holdings Inc's financial leverage ratio has shown fluctuations over the past eight quarters. The ratio increased significantly from 3.08 in Q4 2022 to 5.13 in Q4 2023, indicating a substantial increase in debt relative to equity in the latest quarter. This high level of financial leverage suggests that the company is relying more on debt financing to fund its operations and investments.
It is important to note that a high financial leverage ratio can magnify both returns and risks for the company. While increased leverage can boost profitability during favorable economic conditions, it also exposes the company to higher financial risk, especially during downturns or if the company experiences financial distress.
Overall, Thryv Holdings Inc's trend in financial leverage ratio indicates a notable shift towards higher debt levels in Q4 2023 compared to previous quarters. Investors and stakeholders should carefully monitor this ratio along with the company's overall financial health and performance to assess its ability to manage debt effectively.