Simulations Plus Inc (SLP)
Financial leverage ratio
| Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 186,101 | 188,382 | 179,978 | 168,422 | 45,197 |
| Total stockholders’ equity | US$ in thousands | 170,029 | 178,248 | 165,782 | 156,035 | 37,681 |
| Financial leverage ratio | 1.09 | 1.06 | 1.09 | 1.08 | 1.20 |
August 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $186,101K ÷ $170,029K
= 1.09
The financial leverage ratio of Simulations Plus Inc. has shown consistency over the past five years, ranging from 1.06 to 1.20. The ratio indicates the company's level of debt relative to its equity. A higher ratio suggests a higher reliance on debt financing, while a lower ratio indicates a stronger equity position. In the case of Simulations Plus Inc., the ratio has remained relatively stable, indicating a consistent balance between debt and equity in its capital structure. This stability may reflect the company's prudent approach to managing its financial leverage over the years.
Peer comparison
Aug 31, 2023