REX American Resources Corporation (REX)

Financial leverage ratio

		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	Oct 31, 2019	Jul 31, 2019	Apr 30, 2019
Total assets	US$ in thousands	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	500,502	493,572	494,705	492,492
Total stockholders’ equity	US$ in thousands	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	401,007	396,565	398,578	395,795
Financial leverage ratio		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	1.25	1.24	1.24	1.24

January 31, 2024 calculation

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

The financial leverage ratio of REX American Resources Corporation has shown relatively stable levels over the past few quarters, ranging from 1.22 to 1.31. This ratio indicates the company's degree of financial leverage and represents the proportion of the company's total assets financed by its liabilities. A ratio above 1 suggests that the company relies more on debt financing, while a ratio below 1 indicates a lesser reliance on debt.

The company's financial leverage ratio has fluctuated within a narrow range, reflecting a balanced approach to capital structure management. Despite minor variations, the ratio has generally stayed above 1, indicating that REX American Resources Corporation has predominantly utilized debt to finance its operations and investments. This level of leverage can magnify returns but also increase financial risk, particularly in periods of economic downturns or rising interest rates.

Overall, the stability and consistency of REX American Resources Corporation's financial leverage ratio suggest a relatively conservative approach to leverage management, maintaining an appropriate balance between debt and equity financing to support its business activities.