Simulations Plus Inc (SLP)

Debt-to-assets ratio

		Aug 31, 2023	Aug 31, 2022	Aug 31, 2021	Aug 31, 2020	Aug 31, 2019
Long-term debt	US$ in thousands	—	—	—	—	—
Total assets	US$ in thousands	186,101	188,382	179,978	168,422	45,197
Debt-to-assets ratio		0.00	0.00	0.00	0.00	0.00

August 31, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $—K ÷ $186,101K
= 0.00

Based on the data provided, Simulations Plus Inc.'s debt-to-assets ratio has remained consistently low over the past five years. In 2023 and 2022, the company reported a debt-to-assets ratio of 0.00, indicating that it had no debt relative to its total assets. This signifies a strong financial position with minimal reliance on external borrowing to finance its operations and investments. However, it is worth noting that in 2020, the company reported a slight increase in the ratio to 0.02, suggesting a modest level of debt relative to its total assets. This uptick may warrant further evaluation to understand the reasons behind the change. Overall, the consistent trend of a low debt-to-assets ratio reflects a conservative capital structure and the company's ability to fund its operations predominantly through equity and retained earnings.