Advanced Drainage Systems Inc (WMS)

Financial leverage ratio

		Mar 31, 2025	Dec 31, 2024	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
Total assets	US$ in thousands	3,690,360	3,602,250	3,535,750	3,447,540	3,314,040	3,161,960	3,137,970	3,048,670	2,901,120	3,005,660	3,177,600	3,225,360	2,649,760	2,555,760	2,506,620	2,474,620	2,413,830	2,342,440	2,373,370	2,415,030
Total stockholders’ equity	US$ in thousands	92,652	1,546,280	1,474,690	1,366,880	1,261,900	1,200,250	1,162,760	1,093,070	977,367	1,098,130	1,198,340	1,178,820	1,088,420	1,005,140	916,737	1,011,370	1,049,700	1,013,740	942,613	852,230
Financial leverage ratio		39.83	2.33	2.40	2.52	2.63	2.63	2.70	2.79	2.97	2.74	2.65	2.74	2.43	2.54	2.73	2.45	2.30	2.31	2.52	2.83

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 fluctuated over the period analyzed. The ratio started at 2.83 as of June 30, 2020, decreased to 2.30 by March 31, 2021, and then increased to 2.97 by March 31, 2023 before declining to 2.52 by June 30, 2024.

However, there was a significant outlier in the data, with a notably high ratio of 39.83 recorded as of March 31, 2025. This requires further investigation to understand the reasons behind such a spike in the financial leverage ratio. Overall, the trend shows fluctuations in the financial leverage ratio with a general range between 2.30 and 2.97, indicating the company's level of debt relative to its equity has varied over the years.