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Sovereign Cloud Holdings (ASX:SOV) Debt-to-Equity : 0.29 (As of Dec. 2023)


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What is Sovereign Cloud Holdings Debt-to-Equity?

Sovereign Cloud Holdings's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was A$1.31 Mil. Sovereign Cloud Holdings's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was A$2.95 Mil. Sovereign Cloud Holdings's Total Stockholders Equity for the quarter that ended in Dec. 2023 was A$14.93 Mil. Sovereign Cloud Holdings's debt to equity for the quarter that ended in Dec. 2023 was 0.29.

A high debt to equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.

The historical rank and industry rank for Sovereign Cloud Holdings's Debt-to-Equity or its related term are showing as below:

ASX:SOV' s Debt-to-Equity Range Over the Past 10 Years
Min: 0.1   Med: 0.24   Max: 0.37
Current: 0.29

During the past 4 years, the highest Debt-to-Equity Ratio of Sovereign Cloud Holdings was 0.37. The lowest was 0.10. And the median was 0.24.

ASX:SOV's Debt-to-Equity is ranked worse than
57.68% of 2219 companies
in the Software industry
Industry Median: 0.21 vs ASX:SOV: 0.29

Sovereign Cloud Holdings Debt-to-Equity Historical Data

The historical data trend for Sovereign Cloud Holdings's Debt-to-Equity can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Sovereign Cloud Holdings Debt-to-Equity Chart

Sovereign Cloud Holdings Annual Data
Trend Jun20 Jun21 Jun22 Jun23
Debt-to-Equity
0.26 0.37 0.12 0.21

Sovereign Cloud Holdings Semi-Annual Data
Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
Debt-to-Equity Get a 7-Day Free Trial 0.10 0.12 0.24 0.21 0.29

Competitive Comparison of Sovereign Cloud Holdings's Debt-to-Equity

For the Software - Infrastructure subindustry, Sovereign Cloud Holdings's Debt-to-Equity, along with its competitors' market caps and Debt-to-Equity data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Sovereign Cloud Holdings's Debt-to-Equity Distribution in the Software Industry

For the Software industry and Technology sector, Sovereign Cloud Holdings's Debt-to-Equity distribution charts can be found below:

* The bar in red indicates where Sovereign Cloud Holdings's Debt-to-Equity falls into.


Sovereign Cloud Holdings Debt-to-Equity Calculation

Debt to Equity measures the financial leverage a company has.

Sovereign Cloud Holdings's Debt to Equity Ratio for the fiscal year that ended in Jun. 2023 is calculated as

Debt to Equity=Total Debt / Total Stockholders Equity
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Total Stockholders Equity
=(1.601 + 3.649) / 24.904
=0.21

Sovereign Cloud Holdings's Debt to Equity Ratio for the quarter that ended in Dec. 2023 is calculated as

Debt to Equity=Total Debt / Total Stockholders Equity
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Total Stockholders Equity
=(1.306 + 2.95) / 14.931
=0.29

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Sovereign Cloud Holdings  (ASX:SOV) Debt-to-Equity Explanation

In the calculation of Debt to Equity, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by Total Stockholders Equity. In some calculations, Total Liabilities is used to for calculation.

Be Aware

Because a company can increase its ROE % by having more financial leverage, it is important to watch the leverage ratio when investing in high ROE % companies.

Sovereign Cloud Holdings Debt-to-Equity Related Terms

Thank you for viewing the detailed overview of Sovereign Cloud Holdings's Debt-to-Equity provided by GuruFocus.com. Please click on the following links to see related term pages.

Sovereign Cloud Holdings (ASX:SOV) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Technology » Software » Sovereign Cloud Holdings Ltd (ASX:SOV) » Definitions » Debt-to-Equity
Comparable Companies
ASX:NOV ASX:B4P ASX:DCC ASX:WRK ASX:AV1 ASX:SNS ASX:RTH ASX:PIL ASX:SPT ASX:TAL MSFT ORCL ADBE PANW SNPS VMW FTNT CRWD PLTR SQ
Traded in Other Exchanges
N/A
Address
15-21 Beaconsfield Street, Unit 7, Fyshwick, ACT, AUS, 2609
Website
https://www.australiacloud.com.au
Sovereign Cloud Holdings Ltd provides sovereign cloud services to Australian Governments and critical national industries. It has built a cloud-based platform, which is accredited by Government standards to PROTECTED controls or higher. The platform is available to rent computation cycles and data storage to customers on a pay-as-you-go basis, referred to as Infrastructure as a Service (IaaS).

Sovereign Cloud Holdings (ASX:SOV) Headlines

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