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