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.


Peer comparison

Jan 31, 2024