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.