RPM International Inc (RPM)
Financial leverage ratio
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 6,586,540 | 6,782,000 | 6,707,710 | 6,252,970 | 5,630,950 |
| Total stockholders’ equity | US$ in thousands | 2,510,880 | 2,140,840 | 1,982,430 | 1,741,060 | 1,262,440 |
| Financial leverage ratio | 2.62 | 3.17 | 3.38 | 3.59 | 4.46 |
May 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $6,586,540K ÷ $2,510,880K
= 2.62
The financial leverage ratio of RPM International Inc has shown a declining trend over the past five years, from 4.46 in 2020 to 2.62 in 2024. This indicates that the company has been reducing its reliance on debt to finance its operations and investments. A lower financial leverage ratio suggests that the company is relying more on equity financing, which can be seen as a positive sign of financial stability and lower risk. It is important to consider other aspects of the company's financial health alongside this ratio to get a comprehensive understanding of its overall leverage position.
Peer comparison
May 31, 2024