Concentrix Corporation (CNXC)

Financial leverage ratio

		Nov 30, 2023	Nov 30, 2022	Nov 30, 2021
Total assets	US$ in thousands	12,491,800	6,669,770	5,046,370
Total stockholders’ equity	US$ in thousands	4,143,290	2,695,900	2,620,260
Financial leverage ratio		3.01	2.47	1.93

November 30, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $12,491,800K ÷ $4,143,290K
= 3.01

The financial leverage ratio measures the extent to which a company's operations are financed by debt relative to equity. Concentrix Corp.'s financial leverage ratio has shown fluctuating trends over the past five years. The ratio was 3.01 in 2023, compared to 2.47 in 2022, 1.93 in 2021, 2.25 in 2020, and 3.17 in 2019. The increasing trend from 2019 to 2020 and the subsequent decrease in 2021 indicates significant changes in the company's capital structure. This could suggest shifts in the use of debt financing or changes in equity levels. A higher financial leverage ratio indicates a greater reliance on debt financing, which can amplify both returns and risks for the company. Conversely, a lower ratio suggests less reliance on debt financing, resulting in lower financial risk but potentially lower returns. Overall, the fluctuating trend in the financial leverage ratio of Concentrix Corp. warrants further analysis to understand the company's financing decisions and their potential implications.