REX American Resources Corporation (REX)

Financial leverage ratio

		Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021	Jan 31, 2020
Total assets	US$ in thousands	664,802	579,579	550,361	479,345	500,502
Total stockholders’ equity	US$ in thousands	513,918	447,982	430,792	384,783	401,007
Financial leverage ratio		1.29	1.29	1.28	1.25	1.25

January 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $664,802K ÷ $513,918K
= 1.29

The financial leverage ratio for REX American Resources Corporation has remained relatively stable over the past five years, ranging between 1.25 and 1.29. This indicates that the company's reliance on debt financing compared to equity has been consistent. A financial leverage ratio above 1 suggests that the company has more debt than equity in its capital structure, which can amplify returns on equity when operating profitably, but also increases financial risk. The consistent ratio over the years indicates that the company has maintained a balanced approach between debt and equity financing, which may have helped in managing its financial risk and maintaining stability in its capital structure.