Simulations Plus Inc (SLP)
Financial leverage ratio
| Aug 31, 2024 | Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 196,639 | 186,101 | 188,382 | 179,978 | 168,422 |
| Total stockholders’ equity | US$ in thousands | 182,431 | 170,029 | 178,248 | 165,782 | 156,035 |
| Financial leverage ratio | 1.08 | 1.09 | 1.06 | 1.09 | 1.08 |
August 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $196,639K ÷ $182,431K
= 1.08
The financial leverage ratio of Simulations Plus Inc has fluctuated over the past five years, ranging from 1.06 to 1.09. This ratio indicates that the company relies moderately on debt financing to support its operations and investments. A financial leverage ratio above 1 suggests that the company has more debt than equity in its capital structure. The minor variations in the ratio suggest a relatively stable leverage position for the company during the period under review. It would be important for stakeholders to monitor this ratio closely to ensure that the company maintains a healthy balance between debt and equity to sustain its financial stability.
Peer comparison
Aug 31, 2024