Insteel Industries Inc (IIIN)
Financial leverage ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 422,552 | 447,513 | 471,745 | 390,710 | 337,902 |
| Total stockholders’ equity | US$ in thousands | 350,855 | 381,505 | 389,744 | 302,038 | 264,803 |
| Financial leverage ratio | 1.20 | 1.17 | 1.21 | 1.29 | 1.28 |
September 30, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $422,552K ÷ $350,855K
= 1.20
The financial leverage ratio of Insteel Industries Inc has varied over the past five years. The ratio was 1.20 as of September 30, 2024, which indicates that the company relies on debt to finance its operations by 1.20 times more than its equity. This ratio has shown a slight increase from the previous year when it was 1.17. In 2022, the ratio was 1.21, which was slightly higher than in 2021 (1.29) and 2020 (1.28).
From the trend observed, it appears that Insteel Industries Inc has a relatively consistent reliance on debt to finance its operations, with some fluctuations in the financial leverage ratio over the past five years. However, it is important to note that a higher financial leverage ratio indicates a higher level of financial risk, as the company is more highly leveraged and could face challenges in meeting its debt obligations, especially during tough economic conditions.
Peer comparison
Sep 30, 2024