Advanced Drainage Systems Inc (WMS)
Financial leverage ratio
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 3,690,360 | 3,268,910 | 2,901,120 | 2,649,760 | 2,413,830 |
| Total stockholders’ equity | US$ in thousands | 92,652 | 1,261,900 | 977,367 | 1,088,420 | 1,049,700 |
| Financial leverage ratio | 39.83 | 2.59 | 2.97 | 2.43 | 2.30 |
March 31, 2025 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,690,360K ÷ $92,652K
= 39.83
The financial leverage ratio of Advanced Drainage Systems Inc has shown some fluctuations over the years, ranging from 2.30 as of March 31, 2021, to a peak of 39.83 as of March 31, 2025. This ratio indicates that the company has been increasing its reliance on debt to finance its operations and investments. Such a significant spike in the financial leverage ratio in 2025 may raise concerns about the company's ability to manage its debt levels effectively. It is important for investors and stakeholders to closely monitor this ratio to assess the company's financial risk and solvency position.