RPM International Inc (RPM)
Financial leverage ratio
| May 31, 2025 | Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 7,775,950 | 6,619,580 | 6,683,070 | 6,649,880 | 6,586,540 | 6,382,400 | 6,537,380 | 6,715,280 | 6,782,000 | 6,609,420 | 6,849,510 | 6,802,990 | 6,707,710 | 6,330,600 | 6,254,900 | 6,166,200 | 6,252,970 | 5,792,380 | 5,790,210 | 5,694,420 |
| Total stockholders’ equity | US$ in thousands | 2,885,360 | 2,674,280 | 2,716,030 | 2,649,430 | 2,510,880 | 2,346,810 | 2,360,550 | 2,281,140 | 2,140,840 | 2,053,160 | 2,090,460 | 1,996,060 | 1,982,430 | 1,835,050 | 1,836,110 | 1,788,580 | 1,741,060 | 1,547,480 | 1,547,740 | 1,449,590 |
| Financial leverage ratio | 2.69 | 2.48 | 2.46 | 2.51 | 2.62 | 2.72 | 2.77 | 2.94 | 3.17 | 3.22 | 3.28 | 3.41 | 3.38 | 3.45 | 3.41 | 3.45 | 3.59 | 3.74 | 3.74 | 3.93 |
May 31, 2025 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $7,775,950K ÷ $2,885,360K
= 2.69
The financial leverage ratio of RPM International Inc. demonstrates a sustained decreasing trend over the analyzed period from August 31, 2020, through May 31, 2025. Starting at 3.93 in August 2020, the ratio gradually declined, with some fluctuations, reaching a low of approximately 2.46 in November 2024. As of May 31, 2025, the ratio slightly increased to 2.69.
This downward movement indicates that RPM has been progressively reducing its reliance on debt financing relative to its equity or other forms of capital. The initial higher leverage suggests a more debt-intensive capital structure, which has been moderated over time. The recent decline signifies potential efforts to de-leverage, possibly to improve financial stability, reduce interest obligations, or adapt to evolving market conditions.
However, the slight uptick observed in the latest period may reflect strategic adjustments or short-term financing needs. Overall, the company's trend toward lower financial leverage enhances its credit profile and reduces financial risk, aligning with a potentially more conservative capital approach.
Peer comparison
May 31, 2025