Investor Presentaiton
6 Capital light business model with flexible allocation framework
Due to our improved earnings profile, we lowered our target
leverage range
Balance Sheet Principles
■ Maintain a strong balance sheet that can absorb market
volatility while having the capacity to invest for growth
■ A long-term target leverage range of 1.5x to 2.5x positions
our balance sheet well over a range of economic cycles and
strikes the right balance between preserving balance sheet
strength and investing for growth
■ We are willing to operate temporarily above or below our
target range if conditions warrant
■ At the top end of our target leverage range, we have the
capacity to deploy up to ~$3.9B (16) of additional capital
■ We maintain a management target of at least $200 million in
Corporate Cash (17)(18)
Leverage Ratio(1)
Prior Management Target Range
2x-2.75x
Updated
Management
Target
Range
2.26x
2.15x
2.16x
1.5x – 2.5x
2.05x
1.39x
1.34x
2018
2019
2020
2021
2022
Q1'23
LPL Financial Member FINRA/SIPC
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