Enerpac Tool Group Corp (EPAC)
Financial leverage ratio
| Aug 31, 2024 | May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 777,328 | 749,464 | 769,286 | 765,567 | 762,597 | 793,074 | 773,187 | 774,401 | 757,312 | 797,299 | 821,462 | 812,468 | 820,247 | 842,702 | 809,001 | 838,575 | 824,294 | 851,535 | 879,342 | 908,512 |
| Total stockholders’ equity | US$ in thousands | 391,979 | 365,771 | 336,926 | 321,676 | 326,620 | 336,619 | 340,788 | 334,323 | 318,611 | 366,272 | 413,023 | 409,806 | 412,198 | 416,911 | 381,393 | 367,946 | 359,226 | 336,282 | 354,365 | 353,253 |
| Financial leverage ratio | 1.98 | 2.05 | 2.28 | 2.38 | 2.33 | 2.36 | 2.27 | 2.32 | 2.38 | 2.18 | 1.99 | 1.98 | 1.99 | 2.02 | 2.12 | 2.28 | 2.29 | 2.53 | 2.48 | 2.57 |
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 shown variability over the past several periods, ranging from 1.98 to 2.57. A higher financial leverage ratio indicates a higher level of financial leverage, which means the company relies more on debt financing compared to equity financing.
The trend in Enerpac Tool Group Corp's financial leverage ratio appears to have fluctuated, with some periods showing an increasing trend (e.g., from May 2020 to Feb 2023) followed by some periods of a decrease or stabilization in the ratio.
Overall, a financial leverage ratio above 2 suggests that the company has a significant level of debt relative to its equity. It is crucial for stakeholders to monitor this ratio closely as high financial leverage can increase financial risk, especially during economic downturns or periods of market volatility.
Peer comparison
Aug 31, 2024