CorVel Corp (CRVL)
Financial leverage ratio
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 545,976,000 | 454,679 | 393,923 | 415,246 | 424,760 |
| Total stockholders’ equity | US$ in thousands | 321,987,000 | 247,647 | 202,176 | 212,395 | 220,402 |
| Financial leverage ratio | 1.70 | 1.84 | 1.95 | 1.96 | 1.93 |
March 31, 2025 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $545,976,000K ÷ $321,987,000K
= 1.70
The financial leverage ratio for CorVel Corp has exhibited a relatively stable trend over the five-year period from March 31, 2021, to March 31, 2025. The ratio has fluctuated within a narrow range, ranging from a low of 1.70 in 2025 to a high of 1.96 in 2022. This indicates that the company's reliance on debt to finance its operations and growth has not varied significantly during this period. The decreasing trend from 2022 to 2025 suggests a potential reduction in the company's debt levels relative to its equity, which may imply improved financial stability and lower risk. Overall, a financial leverage ratio below 2 generally indicates a conservative capital structure, with a greater emphasis on equity financing compared to debt.