Enerpac Tool Group Corp (EPAC)
Financial leverage ratio
| 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 | Aug 31, 2019 | May 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 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 | 1,124,270 | 1,393,160 |
| Total stockholders’ equity | US$ in thousands | 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 | 301,179 | 607,424 |
| Financial leverage ratio | 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 | 3.73 | 2.29 |
February 29, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $769,286K ÷ $336,926K
= 2.28
The financial leverage ratio of Enerpac Tool Group Corp has shown some fluctuations over the past few quarters. The ratio ranged from a low of 1.98 to a high of 3.73 between May 2019 and May 2020, indicating a significant increase in leverage during that period. Subsequently, the ratio stabilized around the 2.2 to 2.4 range from November 2020 to November 2023, with some minor variations.
Overall, the company's financial leverage ratio has been relatively stable, hovering around 2.3 on average. A financial leverage ratio of 2.3 implies that the company has $2.30 in debt for every $1 of equity. This suggests that Enerpac Tool Group Corp relies moderately on debt to finance its operations and investments, which can amplify returns but also increase financial risk. Monitoring changes in the financial leverage ratio over time can provide insights into the company's capital structure and risk profile.
Peer comparison
Feb 29, 2024