Quanex Building Products (NX)
Financial leverage ratio
| Oct 31, 2024 | Jul 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,319,790 | 872,450 | 837,213 | 813,420 | 831,143 | 847,809 | 822,112 | 827,026 | 724,617 | 743,607 | 740,490 | 718,272 | 717,323 | 719,192 | 715,572 | 694,271 | 691,585 | 686,791 | 712,885 | 667,200 |
| Total stockholders’ equity | US$ in thousands | 1,010,750 | 594,136 | 566,122 | 555,029 | 545,554 | 525,955 | 492,727 | 475,688 | 464,835 | 450,137 | 436,174 | 424,499 | 419,782 | 405,389 | 395,097 | 377,708 | 355,759 | 339,938 | 323,957 | 329,933 |
| Financial leverage ratio | 2.30 | 1.47 | 1.48 | 1.47 | 1.52 | 1.61 | 1.67 | 1.74 | 1.56 | 1.65 | 1.70 | 1.69 | 1.71 | 1.77 | 1.81 | 1.84 | 1.94 | 2.02 | 2.20 | 2.02 |
October 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,319,790K ÷ $1,010,750K
= 2.30
The financial leverage ratio of Quanex Building Products has shown fluctuations over the past few quarters. The ratio values range from a low of 1.47 in April 2024, July 2024, and January 2024 to a high of 2.30 in October 2024. This indicates that the company's level of debt relative to its equity has varied during this period.
In general, a financial leverage ratio above 1 signifies that the company relies more on debt financing than equity financing. A ratio of 2.30, as seen in October 2024, indicates that the company has more than twice as much debt as equity in its capital structure. This could suggest a higher level of financial risk for the company, as higher debt levels can lead to increased interest expenses and financial obligations.
On the other hand, the lower ratios observed in the other quarters imply a more balanced mix of debt and equity in the company's capital structure. A ratio around 1.47, as seen in several quarters, indicates that the company's debt and equity are roughly equal in proportion, reflecting a lower level of financial risk.
Overall, the fluctuations in Quanex Building Products' financial leverage ratio suggest varying levels of leverage and financial risk in the company's operations. It is important for stakeholders to monitor these changes to assess the company's financial stability and risk profile.
Peer comparison
Oct 31, 2024