Simulations Plus Inc (SLP)

Debt-to-capital ratio

		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	May 31, 2019
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	177,038	172,341	170,029	169,390	164,593	180,122	178,248	177,559	172,576	168,456	165,782	165,398	161,497	158,031	156,035	46,587	40,862	39,187	37,681	36,168
Debt-to-capital ratio		0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00

February 29, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $177,038K)
= 0.00

The debt-to-capital ratio for Simulations Plus Inc has consistently been 0.00 across multiple reporting periods, indicating that the company has not utilized any debt in its capital structure during these periods. A debt-to-capital ratio of 0.00 implies that the company's capital structure is entirely financed by equity, with no debt financing involved. This can be perceived as a positive sign for investors and lenders as it suggests minimal financial risk associated with leverage. However, it is essential to consider the reasons behind the lack of debt in the capital structure and whether it aligns with the company's growth and financial strategies.