Concentrix Corporation (CNXC)

Financial leverage ratio

		Feb 28, 2025	Nov 30, 2024	Aug 31, 2024	May 31, 2024	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	Nov 30, 2020	Aug 31, 2020	May 31, 2020
Total assets	US$ in thousands	11,895,100	11,991,400	12,207,600	12,078,800	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	5,177,560	5,119,390	4,955,480
Total stockholders’ equity	US$ in thousands	4,033,770	4,039,720	4,168,770	4,083,420	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	2,302,080	1,627,970	1,492,540
Financial leverage ratio		2.95	2.97	2.93	2.96	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	2.25	3.14	3.32

February 28, 2025 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $11,895,100K ÷ $4,033,770K
= 2.95

Concentrix Corporation's financial leverage ratio has shown an increasing trend from November 2021 to August 2024, fluctuating between 1.93 and 3.01. The financial leverage ratio measures the company's use of debt to finance its operations and indicates the proportion of debt in its capital structure. A ratio above 1 suggests that the company relies more on debt financing than equity financing.

The gradual increase in the financial leverage ratio indicates that Concentrix has been taking on more debt relative to its equity over the period, which may pose higher financial risk due to increased interest payments and potential challenges in meeting debt obligations. It is essential for investors and stakeholders to closely monitor Concentrix's debt levels and financial health to assess its ability to manage debt efficiently and sustain long-term growth.