Korn Ferry (KFY)
Financial leverage ratio
| Apr 30, 2024 | Apr 30, 2023 | Apr 30, 2022 | Apr 30, 2021 | Apr 30, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 3,678,870 | 3,574,440 | 3,464,550 | 3,056,530 | 2,743,830 |
| Total stockholders’ equity | US$ in thousands | 1,733,060 | 1,648,070 | 1,544,350 | 1,366,390 | 1,221,380 |
| Financial leverage ratio | 2.12 | 2.17 | 2.24 | 2.24 | 2.25 |
April 30, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,678,870K ÷ $1,733,060K
= 2.12
The financial leverage ratio of Korn Ferry has exhibited a slight decline from 2.25 in 2020 to 2.12 in 2024. This ratio indicates that the company relies on debt financing to support its operations and growth, with a higher ratio suggesting a larger proportion of debt in its capital structure. The decreasing trend in the financial leverage ratio may signify that Korn Ferry is gradually reducing its reliance on debt to finance its activities. However, it is important to note that a financial leverage ratio of over 2 suggests that the company's debt levels are relatively high compared to its equity, which can pose risks in terms of financial stability and repayment obligations. Investors and stakeholders should monitor any further fluctuations in this ratio to assess the company's financial risk and leverage position.
Peer comparison
Apr 30, 2024