CSW Industrials, Inc. (CSW)
Financial leverage ratio
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,379,060 | 1,043,330 | 1,043,450 | 995,360 | 874,957 |
| Total stockholders’ equity | US$ in thousands | 1,072,250 | 615,723 | 525,675 | 469,086 | 412,013 |
| Financial leverage ratio | 1.29 | 1.69 | 1.98 | 2.12 | 2.12 |
March 31, 2025 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,379,060K ÷ $1,072,250K
= 1.29
The financial leverage ratio of CSW Industrials, Inc. has exhibited a declining trend over the period from March 31, 2021, through March 31, 2025. Specifically, the ratio remained constant at 2.12 in both 2021 and 2022, indicating a stable level of financial leverage during these years. However, a subsequent decline is observed, with the ratio decreasing to 1.98 in 2023, further to 1.69 in 2024, and reaching 1.29 by 2025. This downward movement suggests a gradual reduction in the company's reliance on debt financing relative to its equity. Such a trend may reflect strategic efforts to deleverage the balance sheet, possibly in response to market conditions, risk management considerations, or management's preference for a more conservative capital structure. Overall, the diminishing financial leverage ratio indicates an improving financial risk profile, with the company decreasing its leverage over the analyzed period.
Peer comparison
Mar 31, 2025