Enerpac Tool Group Corp (EPAC)
Financial leverage ratio
| Aug 31, 2024 | Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 777,328 | 762,597 | 757,312 | 820,247 | 824,294 |
| Total stockholders’ equity | US$ in thousands | 391,979 | 326,620 | 318,611 | 412,198 | 359,226 |
| Financial leverage ratio | 1.98 | 2.33 | 2.38 | 1.99 | 2.29 |
August 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $777,328K ÷ $391,979K
= 1.98
The financial leverage ratio of Enerpac Tool Group Corp has fluctuated over the past five years, ranging from 1.98 to 2.38. A higher financial leverage ratio indicates a higher proportion of debt in the company's capital structure compared to equity.
In 2022, the financial leverage ratio reached its peak at 2.38, suggesting that the company relied more on debt financing that year. This could magnify returns for shareholders during favorable economic conditions but also increase the risk of financial distress during economic downturns.
The financial leverage ratio dropped to 1.99 in 2021 but increased again to 2.33 in 2023 before declining slightly to 1.98 in 2024. Overall, the trend indicates variability in the company's capital structure and debt levels, which could impact its financial stability and borrowing costs. It is essential for stakeholders to closely monitor these fluctuations to assess the company's risk profile and financial health.
Peer comparison
Aug 31, 2024