REX American Resources Corporation (REX)

Financial leverage ratio

		Jan 31, 2025	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
Total assets	US$ in thousands	720,008	715,662	680,009	671,019	664,802	627,564	592,936	566,541	579,579	575,039	559,870	548,041	550,361	524,402	505,507	486,140	479,345	475,161	472,338	476,038
Total stockholders’ equity	US$ in thousands	560,337	564,491	539,633	524,467	513,918	492,993	466,560	453,641	447,982	439,472	442,784	436,018	430,792	409,323	399,272	392,609	384,783	381,909	386,354	389,488
Financial leverage ratio		1.28	1.27	1.26	1.28	1.29	1.27	1.27	1.25	1.29	1.31	1.26	1.26	1.28	1.28	1.27	1.24	1.25	1.24	1.22	1.22

January 31, 2025 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $720,008K ÷ $560,337K
= 1.28

The financial leverage ratio of REX American Resources Corporation has fluctuated over the years, ranging from 1.22 to 1.31. This ratio indicates the proportion of the company's debt to its equity, reflecting the level of financial risk and leverage utilized by the company.

Overall, the financial leverage ratio has shown a slight increasing trend, reaching 1.28 as of January 31, 2025, compared to the lower levels observed in earlier periods. This suggests that the company may be relying more on debt financing relative to equity financing over time.

It is important to note that a higher financial leverage ratio typically indicates higher financial risk and the potential for increased volatility in earnings and cash flows. Therefore, investors and analysts should monitor this ratio closely to assess the company's ability to manage its debt levels effectively and sustain its financial performance in the long run.