TechTarget Inc (TTGT)

Financial leverage ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total assets	US$ in thousands	699,888	764,717	789,000	456,568	221,608
Total stockholders’ equity	US$ in thousands	222,927	217,474	222,757	202,506	152,951
Financial leverage ratio		3.14	3.52	3.54	2.25	1.45

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $699,888K ÷ $222,927K
= 3.14

Techtarget Inc.'s financial leverage ratio has been fluctuating over the past five years, indicating changes in the company's capital structure and debt levels. The ratio has generally been increasing from 2019 to 2022, peaking at 3.54 before slightly decreasing in 2023 to 3.14. This suggests that the company has been relying more on debt financing to support its operations and growth.

A financial leverage ratio above 1 indicates that the company has more debt than equity in its capital structure. With Techtarget Inc.'s ratios consistently above 1, it appears that the company has a leveraged capital structure, which can amplify returns to shareholders in good times but also increase financial risks in times of economic downturns.

The significant increase in the financial leverage ratio from 2019 to 2022 may imply that Techtarget Inc. has been aggressively leveraging its operations through debt, potentially for strategic acquisitions, expansions, or other investment opportunities. However, the slight decrease in the ratio in 2023 could signal a shift towards a more conservative approach to managing the company's debt levels.

Overall, investors and stakeholders should closely monitor Techtarget Inc.'s financial leverage ratio and assess the company's ability to manage its debt obligations and financial risks effectively, considering the impact of leverage on the company's financial performance and long-term sustainability.