Simulations Plus Inc (SLP)
Debt-to-capital ratio
| Aug 31, 2024 | Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 182,431 | 170,029 | 178,248 | 165,782 | 156,035 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
August 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $182,431K)
= 0.00
The debt-to-capital ratio of Simulations Plus Inc has consistently been 0.00 over the past five years, indicating that the company has not utilized any debt to finance its operations relative to its overall capital structure. This implies that the company relies primarily on equity financing, which could be seen as a positive sign of financial stability and robustness. However, it is important to note that a zero debt-to-capital ratio may also signify missed opportunities for leveraging debt to potentially enhance returns for shareholders or fuel growth initiatives. Further analysis of the company's overall financial strategy and risk management approach would be necessary to understand the rationale behind this consistently low debt-to-capital ratio.
Peer comparison
Aug 31, 2024