Korn Ferry (KFY)
Financial leverage ratio
| Apr 30, 2024 | Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | Jan 31, 2020 | Oct 31, 2019 | Jul 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 3,678,870 | 3,556,320 | 3,360,960 | 3,313,470 | 3,574,440 | 3,406,190 | 3,261,740 | 3,204,080 | 3,464,550 | 3,336,100 | 3,117,490 | 2,942,480 | 3,056,530 | 2,863,470 | 2,692,640 | 2,618,100 | 2,743,830 | 2,739,650 | 2,486,280 | 2,406,560 |
| Total stockholders’ equity | US$ in thousands | 1,733,060 | 1,703,620 | 1,656,150 | 1,686,680 | 1,648,070 | 1,608,980 | 1,578,050 | 1,564,750 | 1,544,350 | 1,531,280 | 1,479,520 | 1,417,190 | 1,366,390 | 1,293,190 | 1,219,970 | 1,215,660 | 1,221,380 | 1,275,100 | 1,255,930 | 1,260,900 |
| Financial leverage ratio | 2.12 | 2.09 | 2.03 | 1.96 | 2.17 | 2.12 | 2.07 | 2.05 | 2.24 | 2.18 | 2.11 | 2.08 | 2.24 | 2.21 | 2.21 | 2.15 | 2.25 | 2.15 | 1.98 | 1.91 |
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 fluctuations over the past several quarters. The ratio measures the extent to which the company relies on debt financing compared to its equity. A higher financial leverage ratio indicates a greater reliance on debt to finance the company's operations and investments.
From the data provided, it can be observed that the financial leverage ratio of Korn Ferry has generally been above 2, indicating that the company carries a relatively high level of debt in its capital structure. The ratio peaked at 2.25 in the first quarter of 2020 and has ranged between 2.03 and 2.24 in recent quarters.
The increase in the financial leverage ratio can suggest that Korn Ferry has been taking on more debt to fund its growth or operations. While debt can provide tax advantages and leverage to enhance returns, it also increases financial risk, particularly in times of economic uncertainty or rising interest rates.
It is important for investors and stakeholders to monitor Korn Ferry's financial leverage ratio over time to assess the company's ability to meet its debt obligations and manage financial risks effectively. Additionally, a high financial leverage ratio may impact the company's creditworthiness and borrowing costs in the long run.
Peer comparison
Apr 30, 2024