ViaSat Inc (VSAT)
Financial leverage ratio
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 16,329,400 | 7,730,340 | 6,389,350 | 5,349,470 | 4,883,870 |
| Total stockholders’ equity | US$ in thousands | 5,025,430 | 3,824,310 | 2,633,870 | 2,351,470 | 2,027,790 |
| Financial leverage ratio | 3.25 | 2.02 | 2.43 | 2.27 | 2.41 |
March 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $16,329,400K ÷ $5,025,430K
= 3.25
The financial leverage ratio for ViaSat Inc has shown fluctuations over the past five years. It increased significantly from 2.41 in 2020 to 2.43 in 2022, before decreasing to 2.27 in 2021. However, there was a notable increase in 2023 to 2.02 and a substantial jump to 3.25 in 2024.
A financial leverage ratio of 3.25 in 2024 indicates that ViaSat Inc relies heavily on debt to finance its operations and growth, with a significant portion of its assets funded by debt compared to equity. This high level of financial leverage may suggest increased financial risk for the company, as it has a higher debt burden that needs to be serviced through interest payments.
It is essential for ViaSat Inc to monitor its financial leverage ratio closely to ensure that it maintains a healthy balance between debt and equity financing. A high financial leverage ratio can magnify the impact of fluctuations in earnings on the company's financial stability and may pose challenges in meeting debt obligations in adverse economic conditions. Strategic management of debt levels and capital structure will be crucial for ViaSat Inc to maintain financial health and sustainability.
Peer comparison
Mar 31, 2024