Standex International Corporation (SXI)
Financial leverage ratio
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,005,060 | 1,024,930 | 934,439 | 962,223 | 930,878 |
| Total stockholders’ equity | US$ in thousands | 621,503 | 607,449 | 499,343 | 506,425 | 461,632 |
| Financial leverage ratio | 1.62 | 1.69 | 1.87 | 1.90 | 2.02 |
June 30, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,005,060K ÷ $621,503K
= 1.62
The financial leverage ratio for Standex International Corporation has shown a decreasing trend over the past five years. The ratio decreased from 2.02 in 2020 to 1.62 in 2024. This indicates that the company has reduced its reliance on debt to finance its operations and investments over the years. A lower financial leverage ratio suggests that the company has a stronger equity base relative to its debt, which can be viewed positively by investors and creditors as it signifies lower financial risk. Standex International Corporation's decreasing financial leverage ratio reflects a more conservative approach to capital structure management.
Peer comparison
Jun 30, 2024