Analysis of Solvency Ratios
Quarterly Data
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
AppLovin Corp., solvency ratios (quarterly data)
Based on: 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
- Debt to Equity Ratio
- The debt to equity ratio exhibited an overall increasing trend from March 2022 through March 2025, starting at 1.6 and peaking at 6.45 in March 2025. After this peak, the ratio notably decreased to 3.01 in June 2025 and further to 2.38 by September 2025. This pattern indicates a general increase in reliance on debt relative to shareholder equity during the initial periods, followed by a partial reduction in leverage towards the later quarters.
- Debt to Capital Ratio
- The debt to capital ratio showed a gradual increase from 0.62 in March 2022 to a high of 0.87 in March 2025. Thereafter, the ratio decreased to 0.75 in June 2025 and further to 0.7 by September 2025. This pattern aligns with the debt to equity trends, suggesting a growth in the proportion of debt within the company’s capital structure until early 2025, followed by a modest deleveraging phase.
- Debt to Assets Ratio
- This ratio also increased over time, rising from 0.52 in March 2022 to reach a peak of 0.67 in March and June 2024. Subsequently, it decreased steadily to 0.55 by September 2025. The increase indicates a heavier weighting of debt compared to total assets in the mid-periods, with some reduction in leverage toward the end of the timeline.
- Financial Leverage
- Financial leverage showed a consistent upward trend from 3.06 in March 2022 to a very high 9.92 in March 2025, implying increasing use of debt to finance assets relative to equity. Following this peak, the financial leverage ratio decreased sharply to 5.11 in June 2025 and 4.3 by September 2025, signifying a substantial reduction in leverage after reaching a peak level.
- Interest Coverage Ratio
- The interest coverage ratio improved markedly throughout the period. Beginning at a very low 0.02 in March 2022, it turned positive and gradually increased to 8.08 in March 2025 and continued rising to 13.86 by September 2025. This improvement suggests a strengthening ability to cover interest expenses from earnings, which indicates enhanced profitability or operating performance relative to interest obligations, especially following the periods of elevated leverage.
Debt Ratios
Coverage Ratios
Debt to Equity
AppLovin Corp., debt to equity calculation (quarterly data)
| Sep 30, 2025 | Jun 30, 2025 | 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 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||
| Short-term debt | —) | —) | 200,000) | —) | 35,563) | 35,563) | 35,563) | 215,000) | 215,000) | 33,310) | 33,310) | 33,310) | 33,310) | 33,310) | 29,560) | |||||
| Long-term debt | 3,511,965) | 3,510,958) | 3,509,964) | 3,508,983) | 3,474,456) | 3,482,166) | 3,489,891) | 2,905,906) | 2,912,302) | 3,166,759) | 3,172,563) | 3,178,412) | 3,184,221) | 3,190,047) | 3,195,919) | |||||
| Total debt | 3,511,965) | 3,510,958) | 3,709,964) | 3,508,983) | 3,510,019) | 3,517,729) | 3,525,454) | 3,120,906) | 3,127,302) | 3,200,069) | 3,205,873) | 3,211,722) | 3,217,531) | 3,223,357) | 3,225,479) | |||||
| Stockholders’ equity (deficit) | 1,473,920) | 1,167,127) | 575,421) | 1,089,818) | 938,206) | 814,836) | 760,204) | 1,256,329) | 1,095,790) | 1,517,400) | 1,898,580) | 1,902,677) | 1,881,902) | 1,907,175) | 2,012,295) | |||||
| Solvency Ratio | ||||||||||||||||||||
| Debt to equity1 | 2.38 | 3.01 | 6.45 | 3.22 | 3.74 | 4.32 | 4.64 | 2.48 | 2.85 | 2.11 | 1.69 | 1.69 | 1.71 | 1.69 | 1.60 | |||||
| Benchmarks | ||||||||||||||||||||
| Debt to Equity, Competitors2 | ||||||||||||||||||||
| Accenture PLC | 0.17 | 0.18 | 0.18 | 0.04 | 0.06 | 0.01 | 0.01 | 0.01 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||||
| Adobe Inc. | 0.53 | 0.54 | 0.47 | 0.40 | 0.39 | 0.38 | 0.24 | 0.22 | 0.23 | 0.24 | 0.26 | 0.29 | 0.29 | 0.30 | 0.30 | |||||
| Cadence Design Systems Inc. | 0.48 | 0.49 | 0.52 | 0.53 | 0.62 | 0.32 | 0.18 | 0.19 | 0.21 | 0.22 | 0.23 | 0.27 | 0.29 | 0.13 | 0.13 | |||||
| CrowdStrike Holdings Inc. | 0.24 | 0.26 | 0.29 | 0.32 | 0.37 | 0.40 | 0.46 | 0.51 | 0.56 | 0.60 | 0.67 | 0.72 | 0.78 | 0.82 | 0.87 | |||||
| Datadog Inc. | 0.29 | 0.31 | 0.55 | 0.59 | 0.28 | 0.31 | 0.34 | 0.37 | 0.41 | 0.45 | 0.49 | 0.52 | 0.57 | 0.61 | 0.66 | |||||
| International Business Machines Corp. | 2.26 | 2.33 | 2.35 | 2.01 | 2.31 | 2.35 | 2.56 | 2.51 | 2.39 | 2.59 | 2.72 | 2.32 | 2.53 | 2.59 | 2.85 | |||||
| Intuit Inc. | 0.32 | 0.35 | 0.34 | 0.33 | 0.32 | 0.35 | 0.35 | 0.35 | 0.38 | 0.45 | 0.43 | 0.42 | 0.40 | 0.43 | 0.21 | |||||
| Microsoft Corp. | 0.13 | 0.15 | 0.16 | 0.19 | 0.26 | 0.31 | 0.32 | 0.23 | 0.25 | 0.26 | 0.28 | 0.30 | 0.31 | 0.33 | 0.35 | |||||
| Oracle Corp. | 5.75 | 6.45 | 7.81 | 9.98 | 15.65 | 22.97 | 37.53 | 84.33 | — | — | — | — | — | — | — | |||||
| Palantir Technologies Inc. | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||||
| Palo Alto Networks Inc. | 0.05 | 0.08 | 0.11 | 0.19 | 0.26 | 0.42 | 0.90 | 1.14 | 2.99 | 5.05 | 7.24 | 17.51 | 10.89 | 31.19 | 7.08 | |||||
| Salesforce Inc. | 0.14 | 0.15 | 0.16 | 0.16 | 0.16 | 0.16 | 0.17 | 0.18 | 0.18 | 0.18 | 0.18 | 0.18 | 0.19 | 0.24 | 0.06 | |||||
| ServiceNow Inc. | 0.13 | 0.14 | 0.15 | 0.15 | 0.16 | 0.17 | 0.18 | 0.20 | 0.21 | 0.21 | 0.27 | 0.30 | 0.33 | 0.35 | 0.39 | |||||
| Synopsys Inc. | 0.52 | 1.01 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||||
| Workday Inc. | 0.35 | 0.36 | 0.37 | 0.37 | 0.45 | 0.47 | 0.50 | 0.53 | 0.55 | 0.80 | 0.86 | 0.41 | 0.44 | 0.48 | 0.55 | |||||
Based on: 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q3 2025 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity (deficit)
= 3,511,965 ÷ 1,473,920 = 2.38
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several trends in the company's capital structure over the observed periods. The total debt levels remained relatively stable at around US$3.2 billion through 2022 and the first half of 2023, with a slight decrease towards the end of 2023. However, starting from the first quarter of 2024, total debt experienced a noticeable increase, peaking close to US$3.71 billion in the first quarter of 2025, before decreasing again by the third quarter of 2025.
Stockholders’ equity exhibited a declining trend over the entire timeframe. Initial equity values were above US$2 billion in early 2022, followed by a steady reduction through 2023, reaching a low point around US$760 million by the first quarter of 2024. Thereafter, a gradual recovery is observed, with equity increasing to approximately US$1.47 billion by the last quarter of 2025. Nevertheless, the equity levels towards the end remain significantly below the starting point, indicating a contraction in net assets.
The debt to equity ratio highlights the impact of these movements in debt and equity. The ratio initially hovered around 1.6 to 1.7 in 2022, suggesting moderate leverage. With declining equity values in 2023, the ratio rose markedly, peaking at 2.85 in the third quarter of 2023, before slightly improving in the final quarter of the year. The ratio escalated sharply in 2024, reaching a maximum of 6.45 in the first quarter of 2025, indicating a substantial increase in leverage relative to equity. Subsequently, the ratio decreased to 2.38 by the third quarter of 2025 as equity improved and debt levels stabilized.
- Total Debt
- Relatively stable near US$3.2 billion during 2022 and early 2023, followed by a rise in 2024 with a peak near US$3.71 billion in early 2025, then a decline by late 2025.
- Stockholders’ Equity
- Gradual decline from over US$2 billion in early 2022 to around US$760 million in early 2024, with a recovery phase starting thereafter, reaching nearly US$1.47 billion by late 2025.
- Debt to Equity Ratio
- Increased from about 1.6–1.7 in 2022 to a peak of 6.45 in Q1 2025, then decreased to approximately 2.38 by late 2025, reflecting fluctuating leverage primarily driven by declining then recovering equity and rising debt levels.
Overall, the data depicts a period of rising leverage and financial stress marked by shrinking equity and rising debt from 2022 through early 2025, followed by signs of stabilization and balance sheet improvement during the latter part of 2025. This suggests the company has faced capital structure challenges but may be in the process of deleveraging and strengthening its equity position.
Debt to Capital
AppLovin Corp., debt to capital calculation (quarterly data)
| Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||
| Short-term debt | —) | —) | 200,000) | —) | 35,563) | 35,563) | 35,563) | 215,000) | 215,000) | 33,310) | 33,310) | 33,310) | 33,310) | 33,310) | 29,560) | |||||
| Long-term debt | 3,511,965) | 3,510,958) | 3,509,964) | 3,508,983) | 3,474,456) | 3,482,166) | 3,489,891) | 2,905,906) | 2,912,302) | 3,166,759) | 3,172,563) | 3,178,412) | 3,184,221) | 3,190,047) | 3,195,919) | |||||
| Total debt | 3,511,965) | 3,510,958) | 3,709,964) | 3,508,983) | 3,510,019) | 3,517,729) | 3,525,454) | 3,120,906) | 3,127,302) | 3,200,069) | 3,205,873) | 3,211,722) | 3,217,531) | 3,223,357) | 3,225,479) | |||||
| Stockholders’ equity (deficit) | 1,473,920) | 1,167,127) | 575,421) | 1,089,818) | 938,206) | 814,836) | 760,204) | 1,256,329) | 1,095,790) | 1,517,400) | 1,898,580) | 1,902,677) | 1,881,902) | 1,907,175) | 2,012,295) | |||||
| Total capital | 4,985,885) | 4,678,085) | 4,285,385) | 4,598,801) | 4,448,225) | 4,332,565) | 4,285,658) | 4,377,235) | 4,223,092) | 4,717,469) | 5,104,453) | 5,114,399) | 5,099,433) | 5,130,532) | 5,237,774) | |||||
| Solvency Ratio | ||||||||||||||||||||
| Debt to capital1 | 0.70 | 0.75 | 0.87 | 0.76 | 0.79 | 0.81 | 0.82 | 0.71 | 0.74 | 0.68 | 0.63 | 0.63 | 0.63 | 0.63 | 0.62 | |||||
| Benchmarks | ||||||||||||||||||||
| Debt to Capital, Competitors2 | ||||||||||||||||||||
| Accenture PLC | 0.14 | 0.15 | 0.15 | 0.03 | 0.06 | 0.01 | 0.01 | 0.01 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||||
| Adobe Inc. | 0.35 | 0.35 | 0.32 | 0.29 | 0.28 | 0.27 | 0.19 | 0.18 | 0.19 | 0.20 | 0.20 | 0.23 | 0.22 | 0.23 | 0.23 | |||||
| Cadence Design Systems Inc. | 0.32 | 0.33 | 0.34 | 0.35 | 0.38 | 0.24 | 0.15 | 0.16 | 0.17 | 0.18 | 0.19 | 0.21 | 0.23 | 0.12 | 0.11 | |||||
| CrowdStrike Holdings Inc. | 0.20 | 0.21 | 0.23 | 0.24 | 0.27 | 0.29 | 0.32 | 0.34 | 0.36 | 0.38 | 0.40 | 0.42 | 0.44 | 0.45 | 0.47 | |||||
| Datadog Inc. | 0.22 | 0.23 | 0.36 | 0.37 | 0.22 | 0.24 | 0.25 | 0.27 | 0.29 | 0.31 | 0.33 | 0.34 | 0.36 | 0.38 | 0.40 | |||||
| International Business Machines Corp. | 0.69 | 0.70 | 0.70 | 0.67 | 0.70 | 0.70 | 0.72 | 0.72 | 0.71 | 0.72 | 0.73 | 0.70 | 0.72 | 0.72 | 0.74 | |||||
| Intuit Inc. | 0.24 | 0.26 | 0.25 | 0.25 | 0.24 | 0.26 | 0.26 | 0.26 | 0.27 | 0.31 | 0.30 | 0.30 | 0.29 | 0.30 | 0.17 | |||||
| Microsoft Corp. | 0.12 | 0.13 | 0.14 | 0.16 | 0.21 | 0.24 | 0.24 | 0.19 | 0.20 | 0.21 | 0.22 | 0.23 | 0.23 | 0.25 | 0.26 | |||||
| Oracle Corp. | 0.85 | 0.87 | 0.89 | 0.91 | 0.94 | 0.96 | 0.97 | 0.99 | 1.03 | 1.05 | 1.07 | 1.09 | 1.12 | 1.15 | 1.02 | |||||
| Palantir Technologies Inc. | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||||
| Palo Alto Networks Inc. | 0.05 | 0.08 | 0.10 | 0.16 | 0.21 | 0.29 | 0.47 | 0.53 | 0.75 | 0.83 | 0.88 | 0.95 | 0.92 | 0.97 | 0.88 | |||||
| Salesforce Inc. | 0.13 | 0.13 | 0.14 | 0.14 | 0.14 | 0.14 | 0.14 | 0.15 | 0.15 | 0.15 | 0.15 | 0.15 | 0.16 | 0.19 | 0.06 | |||||
| ServiceNow Inc. | 0.12 | 0.12 | 0.13 | 0.13 | 0.14 | 0.15 | 0.16 | 0.16 | 0.17 | 0.18 | 0.21 | 0.23 | 0.25 | 0.26 | 0.28 | |||||
| Synopsys Inc. | 0.34 | 0.50 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||||
| Workday Inc. | 0.26 | 0.26 | 0.27 | 0.27 | 0.31 | 0.32 | 0.33 | 0.35 | 0.35 | 0.45 | 0.46 | 0.29 | 0.30 | 0.32 | 0.35 | |||||
Based on: 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q3 2025 Calculation
Debt to capital = Total debt ÷ Total capital
= 3,511,965 ÷ 4,985,885 = 0.70
2 Click competitor name to see calculations.
The analysis of the financial ratio data over multiple quarters reveals notable shifts in leverage and capital structure.
- Total Debt
- The total debt values exhibit a relatively stable pattern in the initial eight quarters, maintaining levels just above 3.2 billion USD. Starting from the quarter ending December 31, 2023, there is a significant increase in debt, rising above 3.5 billion USD and peaking at approximately 3.71 billion USD in the quarter ending March 31, 2025. Fluctuations are observed in subsequent quarters but debt remains elevated compared to earlier periods.
- Total Capital
- Total capital shows a declining trend from March 31, 2022, through September 30, 2023, dropping from about 5.24 billion USD to approximately 4.22 billion USD. After this trough, capital begins to recover gradually, increasing to almost 4.99 billion USD by September 30, 2025. This suggests some fluctuation but generally a moderate recovery after a downward trend.
- Debt to Capital Ratio
- The debt to capital ratio begins around 0.62–0.63 in early quarters of 2022, reflecting a moderate leverage level. The ratio then increases noticeably, peaking at 0.74 by September 30, 2023. After fluctuating somewhat, the ratio reaches its highest point at 0.87 in the first quarter of 2025, indicating a significant increase in leverage. Following this peak, the ratio declines to 0.70 by the quarter ending September 30, 2025, suggesting some deleveraging or capital growth relative to debt.
Overall, the data indicates an initial period of stable debt alongside declining total capital, which resulted in increased leverage ratios over time. The peak in debt to capital ratio in early 2025 points to a period of heightened financial risk or increased borrowing. This is partially offset by subsequent improvements in capital and reduction in the ratio, implying efforts to strengthen the capital base or manage debt levels. The trend highlights a financial structure that has become more leveraged over time, reaching a high degree before showing signs of moderation.
Debt to Assets
AppLovin Corp., debt to assets calculation (quarterly data)
| Sep 30, 2025 | Jun 30, 2025 | 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 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||
| Short-term debt | —) | —) | 200,000) | —) | 35,563) | 35,563) | 35,563) | 215,000) | 215,000) | 33,310) | 33,310) | 33,310) | 33,310) | 33,310) | 29,560) | |||||
| Long-term debt | 3,511,965) | 3,510,958) | 3,509,964) | 3,508,983) | 3,474,456) | 3,482,166) | 3,489,891) | 2,905,906) | 2,912,302) | 3,166,759) | 3,172,563) | 3,178,412) | 3,184,221) | 3,190,047) | 3,195,919) | |||||
| Total debt | 3,511,965) | 3,510,958) | 3,709,964) | 3,508,983) | 3,510,019) | 3,517,729) | 3,525,454) | 3,120,906) | 3,127,302) | 3,200,069) | 3,205,873) | 3,211,722) | 3,217,531) | 3,223,357) | 3,225,479) | |||||
| Total assets | 6,343,035) | 5,959,497) | 5,706,701) | 5,869,259) | 5,442,484) | 5,269,466) | 5,262,517) | 5,359,187) | 5,005,228) | 5,482,120) | 5,915,840) | 5,847,846) | 5,805,398) | 5,930,828) | 6,167,193) | |||||
| Solvency Ratio | ||||||||||||||||||||
| Debt to assets1 | 0.55 | 0.59 | 0.65 | 0.60 | 0.64 | 0.67 | 0.67 | 0.58 | 0.62 | 0.58 | 0.54 | 0.55 | 0.55 | 0.54 | 0.52 | |||||
| Benchmarks | ||||||||||||||||||||
| Debt to Assets, Competitors2 | ||||||||||||||||||||
| Accenture PLC | 0.08 | 0.09 | 0.09 | 0.02 | 0.03 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||||
| Adobe Inc. | 0.22 | 0.22 | 0.21 | 0.19 | 0.19 | 0.19 | 0.13 | 0.12 | 0.12 | 0.13 | 0.14 | 0.15 | 0.15 | 0.16 | 0.16 | |||||
| Cadence Design Systems Inc. | 0.26 | 0.26 | 0.27 | 0.28 | 0.31 | 0.19 | 0.11 | 0.11 | 0.12 | 0.13 | 0.13 | 0.15 | 0.16 | 0.08 | 0.08 | |||||
| CrowdStrike Holdings Inc. | 0.10 | 0.10 | 0.11 | 0.11 | 0.13 | 0.13 | 0.14 | 0.15 | 0.17 | 0.18 | 0.19 | 0.20 | 0.22 | 0.24 | 0.26 | |||||
| Datadog Inc. | 0.16 | 0.17 | 0.27 | 0.28 | 0.16 | 0.17 | 0.18 | 0.19 | 0.21 | 0.22 | 0.24 | 0.25 | 0.26 | 0.28 | 0.29 | |||||
| International Business Machines Corp. | 0.43 | 0.43 | 0.43 | 0.40 | 0.42 | 0.42 | 0.43 | 0.42 | 0.43 | 0.43 | 0.44 | 0.40 | 0.40 | 0.39 | 0.41 | |||||
| Intuit Inc. | 0.18 | 0.20 | 0.18 | 0.19 | 0.19 | 0.20 | 0.21 | 0.22 | 0.23 | 0.26 | 0.26 | 0.25 | 0.24 | 0.26 | 0.14 | |||||
| Microsoft Corp. | 0.08 | 0.08 | 0.09 | 0.10 | 0.14 | 0.16 | 0.16 | 0.11 | 0.13 | 0.13 | 0.14 | 0.14 | 0.14 | 0.16 | 0.16 | |||||
| Oracle Corp. | 0.60 | 0.60 | 0.59 | 0.62 | 0.64 | 0.66 | 0.65 | 0.67 | 0.70 | 0.71 | 0.70 | 0.69 | 0.72 | 0.73 | 0.67 | |||||
| Palantir Technologies Inc. | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||||
| Palo Alto Networks Inc. | 0.02 | 0.03 | 0.03 | 0.05 | 0.06 | 0.10 | 0.13 | 0.14 | 0.26 | 0.28 | 0.29 | 0.30 | 0.33 | 0.35 | 0.35 | |||||
| Salesforce Inc. | 0.09 | 0.09 | 0.10 | 0.09 | 0.10 | 0.10 | 0.10 | 0.11 | 0.12 | 0.11 | 0.11 | 0.11 | 0.12 | 0.15 | 0.04 | |||||
| ServiceNow Inc. | 0.07 | 0.07 | 0.07 | 0.07 | 0.08 | 0.08 | 0.08 | 0.09 | 0.10 | 0.10 | 0.11 | 0.11 | 0.13 | 0.13 | 0.14 | |||||
| Synopsys Inc. | 0.30 | 0.42 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||||
| Workday Inc. | 0.18 | 0.18 | 0.19 | 0.18 | 0.21 | 0.22 | 0.22 | 0.22 | 0.24 | 0.31 | 0.32 | 0.18 | 0.20 | 0.20 | 0.22 | |||||
Based on: 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q3 2025 Calculation
Debt to assets = Total debt ÷ Total assets
= 3,511,965 ÷ 6,343,035 = 0.55
2 Click competitor name to see calculations.
- Total Debt
- The total debt remained relatively stable from March 2022 through June 2023, fluctuating slightly around the 3.2 million USD mark. A notable decrease occurred in the third quarter of 2023. However, starting in the first quarter of 2024, total debt increased sharply to approximately 3.5 million USD, followed by fluctuations around this higher level, peaking in the first quarter of 2025 before settling just above 3.5 million USD by the third quarter of 2025.
- Total Assets
- Total assets exhibited a downward trend from March 2022 through September 2023, decreasing from over 6.1 million USD to just above 5 million USD. This decline was interrupted by a modest recovery in the final quarter of 2023 and the subsequent quarters of 2024, where assets rose steadily, reaching approximately 5.87 million USD by December 2024. In 2025, total assets continued to increase, ending near 6.3 million USD in the third quarter, signaling recovery and growth after the previous decline.
- Debt to Assets Ratio
- The debt to assets ratio increased from 0.52 in March 2022 to a peak of 0.62 in September 2023, reflecting a growing proportion of debt relative to assets during this period. The ratio then decreased to 0.58 by December 2023, followed by a sharp rise to 0.67 in the first half of 2024. From mid-2024 onward, the ratio demonstrated a downward trend, falling to 0.55 by September 2025. This indicates an improvement in the company's capital structure with relatively lower leverage by the end of the period under review.
- Summary
- Overall, the company experienced a period of decreasing asset values accompanied by relatively stable to slightly declining debt levels until late 2023. Subsequently, assets recovered strongly in 2024 and 2025, while debt levels increased somewhat but remained relatively controlled. The debt to assets ratio peaked mid-2024, indicating higher leverage risk, but improved steadily thereafter, suggesting strengthening financial stability and a more balanced capital structure approaching the end of the analyzed timeframe.
Financial Leverage
AppLovin Corp., financial leverage calculation (quarterly data)
| Sep 30, 2025 | Jun 30, 2025 | 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 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||
| Total assets | 6,343,035) | 5,959,497) | 5,706,701) | 5,869,259) | 5,442,484) | 5,269,466) | 5,262,517) | 5,359,187) | 5,005,228) | 5,482,120) | 5,915,840) | 5,847,846) | 5,805,398) | 5,930,828) | 6,167,193) | |||||
| Stockholders’ equity (deficit) | 1,473,920) | 1,167,127) | 575,421) | 1,089,818) | 938,206) | 814,836) | 760,204) | 1,256,329) | 1,095,790) | 1,517,400) | 1,898,580) | 1,902,677) | 1,881,902) | 1,907,175) | 2,012,295) | |||||
| Solvency Ratio | ||||||||||||||||||||
| Financial leverage1 | 4.30 | 5.11 | 9.92 | 5.39 | 5.80 | 6.47 | 6.92 | 4.27 | 4.57 | 3.61 | 3.12 | 3.07 | 3.08 | 3.11 | 3.06 | |||||
| Benchmarks | ||||||||||||||||||||
| Financial Leverage, Competitors2 | ||||||||||||||||||||
| Accenture PLC | 2.07 | 2.05 | 2.05 | 1.98 | 1.95 | 1.89 | 1.93 | 1.99 | 1.98 | 2.01 | 2.05 | 2.14 | 2.16 | 2.16 | 2.15 | |||||
| Adobe Inc. | 2.44 | 2.46 | 2.29 | 2.14 | 2.05 | 2.02 | 1.86 | 1.80 | 1.84 | 1.88 | 1.88 | 1.93 | 1.86 | 1.88 | 1.89 | |||||
| Cadence Design Systems Inc. | 1.85 | 1.90 | 1.89 | 1.92 | 2.01 | 1.70 | 1.60 | 1.67 | 1.74 | 1.77 | 1.76 | 1.87 | 1.83 | 1.66 | 1.59 | |||||
| CrowdStrike Holdings Inc. | 2.55 | 2.52 | 2.70 | 2.88 | 2.87 | 3.00 | 3.20 | 3.43 | 3.40 | 3.39 | 3.48 | 3.53 | 3.48 | 3.47 | 3.39 | |||||
| Datadog Inc. | 1.76 | 1.82 | 2.06 | 2.13 | 1.76 | 1.83 | 1.88 | 1.94 | 1.96 | 2.01 | 2.08 | 2.13 | 2.17 | 2.18 | 2.26 | |||||
| International Business Machines Corp. | 5.24 | 5.40 | 5.42 | 5.02 | 5.49 | 5.57 | 5.90 | 6.00 | 5.60 | 5.96 | 6.19 | 5.80 | 6.27 | 6.57 | 7.00 | |||||
| Intuit Inc. | 1.82 | 1.77 | 1.83 | 1.74 | 1.68 | 1.76 | 1.68 | 1.61 | 1.64 | 1.72 | 1.69 | 1.69 | 1.68 | 1.69 | 1.53 | |||||
| Microsoft Corp. | 1.75 | 1.76 | 1.82 | 1.91 | 1.91 | 1.97 | 2.02 | 2.00 | 1.95 | 1.99 | 2.07 | 2.19 | 2.12 | 2.13 | 2.21 | |||||
| Oracle Corp. | 9.65 | 10.80 | 13.33 | 16.20 | 24.38 | 34.74 | 57.66 | 125.24 | — | — | — | — | — | — | — | |||||
| Palantir Technologies Inc. | 1.23 | 1.24 | 1.24 | 1.27 | 1.28 | 1.28 | 1.27 | 1.30 | 1.31 | 1.35 | 1.35 | 1.35 | 1.39 | 1.40 | 1.40 | |||||
| Palo Alto Networks Inc. | 3.04 | 3.29 | 3.45 | 3.87 | 4.01 | 4.20 | 6.82 | 8.29 | 11.50 | 18.06 | 24.69 | 58.35 | 32.88 | 88.29 | 20.09 | |||||
| Salesforce Inc. | 1.56 | 1.60 | 1.61 | 1.67 | 1.57 | 1.59 | 1.63 | 1.69 | 1.55 | 1.57 | 1.58 | 1.64 | 1.53 | 1.60 | 1.52 | |||||
| ServiceNow Inc. | 1.93 | 2.02 | 2.07 | 2.12 | 1.98 | 2.10 | 2.16 | 2.28 | 2.10 | 2.15 | 2.43 | 2.64 | 2.46 | 2.65 | 2.75 | |||||
| Synopsys Inc. | 1.75 | 2.40 | 1.40 | 1.45 | 1.51 | 1.54 | 1.58 | 1.68 | 1.67 | 1.68 | 1.70 | 1.71 | 1.66 | 1.66 | 1.65 | |||||
| Workday Inc. | 1.90 | 1.95 | 1.95 | 2.04 | 2.10 | 2.19 | 2.23 | 2.41 | 2.29 | 2.58 | 2.68 | 2.31 | 2.24 | 2.36 | 2.53 | |||||
Based on: 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q3 2025 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity (deficit)
= 6,343,035 ÷ 1,473,920 = 4.30
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals notable trends in the company's asset base, equity position, and financial leverage over the observed periods.
- Total Assets
- The total assets exhibit variability with a general declining trend from early 2022 through mid-2023, falling from approximately $6.17 billion at the end of March 2022 to about $5.01 billion at the end of September 2023. This decline is followed by a rebound, with assets increasing notably during the last quarter of 2023 and continuing upwards through to September 2025, reaching approximately $6.34 billion. This fluctuation suggests periods of asset reductions possibly due to disposals, impairments, or operational losses, followed by reinvestments or acquisitions contributing to asset growth in subsequent quarters.
- Stockholders’ Equity (Deficit)
- Stockholders’ equity shows a consistent reduction through early 2023, decreasing from approximately $2.01 billion at the end of March 2022 to about $1.10 billion by September 2023. This downward trend reaches a low point around the first quarter of 2024, with equity around $760 million. Subsequent quarters show a gradual recovery with equity increasing to roughly $1.47 billion by the third quarter of 2025. The decline in equity alongside fluctuating asset levels points to significant impacts from losses or distributions exceeding income, while the recovery phase may be indicative of improved profitability or capital infusion.
- Financial Leverage
- The financial leverage ratio illustrates an increasing trend from a ratio of approximately 3.06 at the end of March 2022 to a peak near 9.92 by the first quarter of 2025, indicating a substantial rise in the proportion of debt relative to equity. After this peak, the ratio declines sharply to about 4.3 by the third quarter of 2025. The rising leverage through early 2025 suggests increasing reliance on debt financing or diminishing equity base, which may heighten financial risk. The subsequent decline implies deleveraging through equity growth, debt reduction, or both, potentially reflecting strategic financial restructuring or improved earnings retention.
Overall, the financial data indicate a cycle of asset contraction and expansion, accompanied by a significant equity erosion followed by recovery, resulting in volatile leverage levels. These patterns may reflect operational challenges and capital management responses, highlighting the importance of monitoring liquidity and solvency metrics in assessing the company’s financial stability.
Interest Coverage
AppLovin Corp., interest coverage calculation (quarterly data)
| Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||
| Net income (loss) attributable to AppLovin | 835,545) | 819,531) | 576,419) | 599,204) | 434,420) | 309,969) | 236,183) | 172,233) | 108,639) | 80,357) | (4,518) | (79,512) | 23,771) | (21,748) | (115,257) | |||||
| Add: Net income attributable to noncontrolling interest | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | (109) | (51) | (41) | |||||
| Less: Income (loss) from discontinued operations, net of income taxes | —) | 47,675) | (147,119) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | |||||
| Add: Income tax expense | 185,401) | 112,148) | 71,068) | (84,080) | 33,249) | 15,298) | 31,762) | 6,663) | 586) | 15,445) | 1,165) | 13,340) | (22,053) | 39,167) | (42,684) | |||||
| Add: Interest expense | 51,429) | 51,409) | 52,888) | 94,199) | 75,213) | 74,666) | 74,182) | 71,584) | 78,583) | 50,987) | 74,511) | 54,722) | 48,627) | 36,505) | 32,009) | |||||
| Earnings before interest and tax (EBIT) | 1,072,375) | 935,413) | 847,494) | 609,323) | 542,882) | 399,933) | 342,127) | 250,480) | 187,808) | 146,789) | 71,158) | (11,450) | 50,236) | 53,873) | (125,973) | |||||
| Solvency Ratio | ||||||||||||||||||||
| Interest coverage1 | 13.86 | 10.72 | 8.08 | 5.95 | 5.19 | 3.95 | 3.37 | 2.38 | 1.52 | 1.12 | 0.76 | -0.19 | 0.25 | 0.19 | 0.02 | |||||
| Benchmarks | ||||||||||||||||||||
| Interest Coverage, Competitors2 | ||||||||||||||||||||
| Accenture PLC | 57.86 | 80.38 | 135.71 | 165.48 | 175.20 | 175.18 | 168.23 | 193.31 | 220.23 | 212.89 | 217.31 | 195.34 | 188.01 | 133.08 | 133.32 | |||||
| Adobe Inc. | 35.26 | 37.00 | 40.93 | 42.01 | 46.90 | 53.43 | 58.12 | 61.17 | 58.59 | 55.57 | 53.27 | 54.64 | 54.21 | 54.34 | 53.39 | |||||
| Cadence Design Systems Inc. | 13.53 | 13.50 | 15.95 | 19.37 | 24.99 | 33.48 | 36.67 | 36.43 | 32.16 | 34.13 | 38.63 | 46.58 | 57.84 | 58.34 | 52.92 | |||||
| CrowdStrike Holdings Inc. | 7.50 | 9.33 | 7.64 | 5.77 | 1.41 | -1.80 | -4.04 | -5.31 | -4.72 | -4.71 | -5.09 | -5.34 | -6.41 | -8.16 | -12.40 | |||||
| Datadog Inc. | 12.47 | 15.42 | 22.90 | 29.85 | 37.27 | 33.23 | 24.08 | 10.56 | -1.85 | -5.72 | -4.15 | -1.30 | 0.81 | 1.72 | 1.24 | |||||
| International Business Machines Corp. | 6.05 | 4.44 | 4.39 | 4.39 | 4.69 | 6.33 | 6.21 | 6.41 | 6.44 | 2.34 | 2.25 | 1.95 | 1.59 | 6.01 | 5.40 | |||||
| Intuit Inc. | 18.45 | 16.48 | 15.76 | 15.67 | 15.74 | 14.07 | 13.20 | 13.05 | 14.66 | 16.17 | 19.99 | 32.38 | 55.36 | 62.71 | 93.29 | |||||
| Oracle Corp. | 4.96 | 4.81 | 4.60 | 4.34 | 4.08 | 3.88 | 3.74 | 3.60 | 3.96 | 4.41 | 3.33 | 3.78 | 3.98 | 4.23 | 6.06 | |||||
| Palantir Technologies Inc. | — | — | — | — | 3,786.90 | 499.52 | 149.97 | 69.33 | 34.43 | -5.32 | -49.82 | -87.97 | -176.15 | -201.09 | -194.27 | |||||
| Palo Alto Networks Inc. | 427.74 | 269.85 | 163.77 | 120.07 | 72.96 | 46.08 | 35.96 | 21.82 | 10.40 | 4.05 | -1.99 | -6.56 | -4.28 | -3.42 | -2.65 | |||||
| Synopsys Inc. | 5.98 | 15.86 | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||
Based on: 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q3 2025 Calculation
Interest coverage
= (EBITQ3 2025
+ EBITQ2 2025
+ EBITQ1 2025
+ EBITQ4 2024)
÷ (Interest expenseQ3 2025
+ Interest expenseQ2 2025
+ Interest expenseQ1 2025
+ Interest expenseQ4 2024)
= (1,072,375 + 935,413 + 847,494 + 609,323)
÷ (51,429 + 51,409 + 52,888 + 94,199)
= 13.86
2 Click competitor name to see calculations.
- Earnings before interest and tax (EBIT)
- The EBIT shows a clear upward trend over the analyzed periods. Starting from a negative value of -125,973 thousand USD in the first quarter of 2022, it fluctuated initially but then demonstrated consistent growth from March 2023 onwards. By the first quarter of 2025, EBIT reached a substantial positive figure of 1,072,375 thousand USD. This indicates significant improvement in operational profitability over the time frame.
- Interest expense
- Interest expense shows variability but no consistent upward or downward trend. It initially increased from 32,009 thousand USD in March 2022 to a peak of 74,511 thousand USD in March 2023. Thereafter, interest expense fluctuated around the 50,000 to 75,000 thousand USD range without any definitive trend, ending near 51,429 thousand USD in the last reported quarter of 2025.
- Interest coverage ratio
- The interest coverage ratio, which measures the ability to cover interest expenses with EBIT, improved significantly. From a very low ratio of 0.02 in March 2022—indicating poor coverage—it improved steadily and consistently. Notably, it turned positive and increased above 1.0 by June 2023, reflecting that EBIT was sufficient to cover interest charges. The ratio continued to increase substantially, reaching 13.86 by the last quarter of 2025, demonstrating strong financial health and improved ability to meet interest obligations comfortably.