Dollar Amounts
USD (Millions)
Balance sheet data in USD (millions)
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Over the five-year period H&R Block’s total assets fell from $4,014m in 2021 to $3,264m in 2025, a decline of roughly 19%. Assets dropped sharply after 2021 to a low of $3,072m in 2023, then recovered modestly in 2024–25. Total liabilities moved in the same direction but less aggressively: from $3,626m (2021) to $3,175m (2025), down about 12%. Liabilities declined most between 2021 and 2022 and then stabilized, rising slightly in 2024–25 as assets recovered. The most striking development is the collapse in shareholders’ equity, from $388m in 2021 to just $89m in 2025 (about a 77% drop), with equity almost exhausted in 2023 ($32m) before a partial rebound. As a result, the balance sheet has become materially more leveraged: liabilities/assets rose from ~90% in 2021 to roughly 97–99% in 2023–25, and equity/assets fell from ~9.7% to ~2.7%. For a tax-preparation/financial-services firm like H&R Block, such a thin equity cushion reduces financial flexibility and increases vulnerability to earnings shocks, write‑downs, or liquidity stress. Key items to watch are the drivers behind the equity decline (net losses, repurchases, or one‑time charges), operating profitability trends, and any changes to working-capital or debt structure that could restore a healthier capital buffer.
This analysis is for informational purposes only and does not constitute financial advice or recommendations for any investment decisions. Please consult with a qualified financial professional for personalized guidance.