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.