Simulations Plus Inc (SLP)
Debt-to-capital ratio
| Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 170,029 | 178,248 | 165,782 | 156,035 | 37,681 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
August 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $170,029K)
= 0.00
The debt-to-capital ratio of Simulations Plus Inc. has remained relatively stable over the past five years. In 2023, the ratio stood at 0.00, consistent with the values of 0.00 in 2022 and 2021. This indicates that the company did not have any long-term debt as a percentage of its total capital in these years. However, in 2020, the ratio was 0.03, suggesting a slight increase in long-term debt relative to total capital compared to the other years. The ratio then returned to 0.00 in 2019. It is important to note that a low debt-to-capital ratio generally signifies lower financial risk and less reliance on borrowing to fund operations or expansion. However, it might also indicate limited access to debt financing for potential growth opportunities. Further analysis of the company's financing structure and future capital allocation strategies may provide additional insights into its financial leverage.
Peer comparison
Aug 31, 2023