Standex International Corporation (SXI)
Financial leverage ratio
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,566,880 | 1,005,060 | 1,024,930 | 934,439 | 962,223 |
| Total stockholders’ equity | US$ in thousands | 711,677 | 621,503 | 607,449 | 499,343 | 506,425 |
| Financial leverage ratio | 2.20 | 1.62 | 1.69 | 1.87 | 1.90 |
June 30, 2025 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,566,880K ÷ $711,677K
= 2.20
The financial leverage ratio of Standex International Corporation has exhibited fluctuations over the analyzed period from June 30, 2021, to June 30, 2025. Specifically, the ratio was 1.90 in 2021, indicating that for every dollar of equity, approximately \$1.90 of assets were financed through debt or liabilities. By June 30, 2022, the ratio slightly decreased to 1.87, reflecting a marginal reduction in leverage, which may suggest a modest deleveraging strategy or a shift in the company's capital structure, such as increased equity or reduced debt levels.
The trend continued with a more noticeable decrease to 1.69 in 2023 and further to 1.62 in 2024. This consistent decline suggests a period during which the company was reducing its financial leverage, possibly with the intent to lower financial risk or improve creditworthiness. Such a strategy might involve paying down existing debt or increasing retained earnings through operational efficiencies or profitability.
However, in 2025, the financial leverage ratio increased sharply to 2.20. This rise indicates that the company once again increased its dependence on debt financing relative to equity, elevating its financial risk profile. This re-leveraging could be due to several factors, such as new borrowing for expansion, acquisitions, or capital expenditures, or a reduction in equity capital.
Overall, the pattern of the financial leverage ratio suggests a period of gradual deleveraging followed by a strategic or operational shift leading to increased leverage in 2025. The company's leverage management appears to have fluctuated in response to internal and external factors, balancing growth ambitions with financial stability considerations.
Peer comparison
Jun 30, 2025