Simulations Plus Inc (SLP)
Debt-to-equity 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-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
August 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $182,431K
= 0.00
The debt-to-equity ratio for Simulations Plus Inc over the past five years has consistently been 0.00. This indicates that the company has not utilized any debt in its capital structure during this time period, relying solely on equity financing to support its operations and growth. A debt-to-equity ratio of 0.00 signifies a conservative financial approach, with a low risk of financial distress due to minimal debt obligations. While the absence of debt can enhance financial stability, it may also limit the company's ability to leverage opportunities for expansion or investment that would typically be financed through debt. Overall, the consistent 0.00 debt-to-equity ratio suggests a cautious approach to capital structure management by Simulations Plus Inc.
Peer comparison
Aug 31, 2024