Concentrix Corporation (CNXC)

Financial leverage ratio

		Feb 29, 2024	Nov 30, 2023	Aug 31, 2023	May 31, 2023	Feb 28, 2023	Nov 30, 2022	Aug 31, 2022	May 31, 2022	Feb 28, 2022	Nov 30, 2021	Aug 31, 2021	May 31, 2021	Feb 28, 2021
Total assets	US$ in thousands	12,242,900	12,491,800	8,449,540	6,560,000	6,623,070	6,669,770	6,749,870	6,612,650	6,716,790	5,046,370	5,009,440	5,102,240	5,120,850
Total stockholders’ equity	US$ in thousands	4,101,640	4,143,290	2,903,520	2,854,260	2,800,500	2,695,900	2,646,630	2,723,940	2,732,000	2,620,260	2,565,760	2,529,770	2,389,280
Financial leverage ratio		2.98	3.01	2.91	2.30	2.36	2.47	2.55	2.43	2.46	1.93	1.95	2.02	2.14

February 29, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $12,242,900K ÷ $4,101,640K
= 2.98

Concentrix Corporation's financial leverage ratio has shown some fluctuations over the past year. The ratio ranged from a low of 1.93 to a high of 3.01 during this period.

A high financial leverage ratio indicates that the company is relying more on debt financing to fund its operations and growth. This can lead to higher interest payments and financial risk, as the company may struggle to meet its debt obligations if earnings decline.

On the other hand, a low financial leverage ratio suggests that the company has a stronger equity base and is less reliant on debt. While this may indicate a lower risk of financial distress, it could also mean missed opportunities for leveraging debt to finance growth.

Overall, it is important for Concentrix Corporation to carefully manage its financial leverage ratio to strike a balance between leveraging debt for growth and maintaining a healthy financial position. Monitoring the trend of this ratio over time will provide valuable insights into the company's capital structure and risk profile.