CSW Industrials Inc (CSWI)
Financial leverage ratio
| 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 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 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 | 371,357 | 369,245 |
| Total stockholders’ equity | US$ in thousands | 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 | 284,010 | 276,741 |
| Financial leverage ratio | 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 | 1.31 | 1.33 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,350,200K ÷ $1,044,020K
= 1.29
The financial leverage ratio of CSW Industrials Inc has exhibited a fluctuating trend over the reporting periods provided. The ratio, calculated as total assets divided by total equity, indicates the degree to which a company is using debt to finance its operations.
From March 31, 2020, to December 31, 2020, the financial leverage ratio increased significantly from 1.33 to 2.19, suggesting a notable increase in the company's reliance on debt financing during this period. This high leverage may indicate a higher financial risk, as the company has more debt in relation to its equity.
Subsequently, from December 31, 2020, to December 31, 2024, the financial leverage ratio ranged from 1.29 to 2.18, showing some variations over time. The ratio peaked at 2.18 on June 30, 2022, and gradually decreased thereafter, reaching its lowest point at 1.29 on December 31, 2024.
The decreasing trend in the financial leverage ratio from June 30, 2022, to December 31, 2024, signifies a potential decrease in the company's debt relative to its equity, indicating a more conservative approach to financing its operations. It is important to note that a lower financial leverage ratio is generally considered favorable as it implies less financial risk and greater financial stability for the company.
Overall, the financial leverage ratio of CSW Industrials Inc has shown fluctuations over the reporting periods, with a notable peak in 2020 followed by a gradual decline towards the end of 2024, suggesting a varying mix of debt and equity in the company's capital structure.
Peer comparison
Dec 31, 2024