CSW Industrials, Inc. (CSW)
Financial leverage ratio
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,535,920 | 1,379,060 | 1,350,200 | 1,359,300 | 1,050,530 | 1,043,330 | 993,131 | 1,011,310 | 1,033,100 | 1,043,450 | 1,047,670 | 1,021,390 | 1,017,920 | 995,360 | 950,045 | 903,022 | 904,242 | 874,957 | 880,577 | 391,667 |
| Total stockholders’ equity | US$ in thousands | 1,109,830 | 1,072,250 | 1,044,020 | 1,030,170 | 650,158 | 615,723 | 589,072 | 586,927 | 560,094 | 525,675 | 498,768 | 483,033 | 466,720 | 469,086 | 458,738 | 448,947 | 431,120 | 412,013 | 402,717 | 302,041 |
| Financial leverage ratio | 1.38 | 1.29 | 1.29 | 1.32 | 1.62 | 1.69 | 1.69 | 1.72 | 1.84 | 1.98 | 2.10 | 2.11 | 2.18 | 2.12 | 2.07 | 2.01 | 2.10 | 2.12 | 2.19 | 1.30 |
June 30, 2025 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,535,920K ÷ $1,109,830K
= 1.38
The financial leverage ratio of CSW Industrials, Inc. exhibits notable variability over the analyzed period from September 2020 through June 2025. Initially, the ratio was relatively moderate at 1.30 in September 2020, indicating a conservative level of debt relative to equity. Subsequently, a significant increase occurred, reaching a peak of 2.19 at the end of 2020 (December 31, 2020), reflecting an increased proportion of debt in the company's capital structure.
During 2021, the leverage ratio stabilized around the 2.10 to 2.12 range, suggesting a maintained strategy of leveraging debt, with minor fluctuations. The subsequent period saw the ratio fluctuate marginally between approximately 2.10 and 2.18 through 2022, indicating a consistent leverage approach, though slight declines and increases point to active debt management practices.
From late 2022 onward, a discernible decreasing trend in the ratio is apparent, dropping from approximately 2.11 (September 2022) to 1.69 by the end of 2023. This decline suggests a reduction in debt relative to equity, potentially indicative of deleveraging efforts, improved earnings, or a shift towards equity financing.
The downward trend persisted into 2024, with the ratio further decreasing to 1.29 by December 2024, reaching its lowest point within the period analyzed. This trend continued into the first half of 2025, with the ratio averaging around 1.29 to 1.38, indicating a substantial reduction in leverage over time.
Overall, the company's financial leverage ratio demonstrates a transition from a more leveraged position during 2020-2022 toward a significantly less leveraged stance in the subsequent years. This trend reflects a strategic move towards lower debt levels relative to equity, which may enhance financial stability and reduce financial risk but could also influence growth strategies depending on capital needs.
Peer comparison
Jun 30, 2025