Thryv Holdings Inc (THRY)
Financial leverage ratio
| 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 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 654,753 | 785,483 | 786,835 | 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 | 1,300,720 | 1,353,800 | 1,388,290 |
| Total stockholders’ equity | US$ in thousands | 94,532 | 183,060 | 167,066 | 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 | 36,500 | 33,892 | 27,260 |
| Financial leverage ratio | 6.93 | 4.29 | 4.71 | 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 | 35.64 | 39.94 | 50.93 |
September 30, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $654,753K ÷ $94,532K
= 6.93
The financial leverage ratio of Thryv Holdings Inc has shown fluctuations over the periods presented in the table. The ratio measures the company's use of debt to finance its operations and assets. A higher financial leverage ratio indicates a higher level of debt relative to equity, which can amplify both returns and risks for shareholders.
Analyzing the trend, we observe that the financial leverage ratio has varied significantly over time. In recent quarters, the ratio has generally been in the range of 2 to 6, indicating a moderate level of leverage. However, there were periods, such as in late 2019 and early 2020, where the ratio spiked significantly, reaching levels as high as 50.93. Such high leverage ratios may suggest a heavy reliance on debt financing, which could expose the company to financial risks, especially during economic downturns or when facing challenges in generating sufficient cash flows to service the debt.
It is worth noting that a consistent and sustainable financial leverage ratio is crucial for maintaining a healthy capital structure. Excessively high leverage ratios can lead to financial distress and constrain the company's ability to invest in growth opportunities or weather economic uncertainties. Conversely, too low a ratio may indicate underutilization of debt for potential growth or leverage advantages.
Overall, Thryv Holdings Inc's financial leverage ratio has fluctuated over the periods examined, underscoring the need for prudent debt management and monitoring of leverage levels to maintain a balanced capital structure and enhance long-term financial stability.