RPM International Inc (RPM)
Financial leverage ratio
| 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 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 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 | 5,630,950 | 5,565,870 | 5,581,000 | 5,596,420 |
| Total stockholders’ equity | US$ in thousands | 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 | 1,262,440 | 1,350,510 | 1,400,690 | 1,343,390 |
| Financial leverage ratio | 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 | 4.46 | 4.12 | 3.98 | 4.17 |
May 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $6,586,540K ÷ $2,510,880K
= 2.62
The financial leverage ratio for RPM International Inc has shown fluctuations over the past few quarters, indicating changes in the company's capital structure and debt levels. The ratio has generally been on an upward trend, starting at 2.62 in May 2024 and reaching a peak of 4.46 in August 2020, before decreasing slightly to 4.12 in February 2020.
A financial leverage ratio above 1 suggests that the company relies more on debt financing than equity financing. A higher ratio indicates higher financial risk, as the company has more debt relative to its equity. RPM International Inc's increasing trend in the financial leverage ratio may suggest that the company has been taking on more debt to support its operations or growth initiatives.
It is important for investors and stakeholders to closely monitor the financial leverage ratio, as high levels of debt can lead to increased interest expenses, financial distress, and impact the company's ability to access additional financing in the future. Further analysis of the company's debt maturity profile, interest coverage ratios, and overall financial health would provide a more complete understanding of RPM International Inc's capital structure and leverage position.
Peer comparison
May 31, 2024