Standex International Corporation (SXI)
Financial leverage ratio
| Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,005,060 | 993,506 | 1,005,060 | 981,433 | 1,024,930 | 1,015,090 | 956,685 | 921,259 | 934,439 | 973,568 | 970,570 | 960,642 | 962,223 | 946,338 | 958,657 | 941,902 | 930,878 | 956,922 | 967,815 | 949,292 |
| Total stockholders’ equity | US$ in thousands | 621,503 | 618,982 | 620,571 | 594,639 | 607,449 | 605,550 | 529,417 | 491,690 | 499,343 | 527,620 | 523,450 | 512,730 | 506,425 | 482,653 | 498,190 | 476,568 | 461,632 | 466,804 | 489,604 | 472,921 |
| Financial leverage ratio | 1.62 | 1.61 | 1.62 | 1.65 | 1.69 | 1.68 | 1.81 | 1.87 | 1.87 | 1.85 | 1.85 | 1.87 | 1.90 | 1.96 | 1.92 | 1.98 | 2.02 | 2.05 | 1.98 | 2.01 |
June 30, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,005,060K ÷ $621,503K
= 1.62
Standex International Corporation's financial leverage ratio has shown some fluctuation over the past few quarters, ranging from 1.61 to 2.05. The financial leverage ratio measures the extent to which the company relies on debt financing rather than equity. A higher ratio indicates higher financial leverage or debt levels relative to equity.
The trend in Standex International Corporation's financial leverage ratio indicates an increase in leverage over the period analyzed, with the ratio rising from 1.62 in December 2019 to 2.05 in March 2020, before declining slightly to 1.62 in March 2024. This suggests that the company has been increasingly relying on debt to finance its operations and growth.
A financial leverage ratio above 1 indicates that a company has more debt than equity in its capital structure. While leverage can amplify returns in good times, it also increases the company's financial risk and interest expense burden, especially in challenging economic conditions. Therefore, investors and analysts should closely monitor the trend in Standex International Corporation's financial leverage ratio to assess its financial health and risk profile.
Peer comparison
Jun 30, 2024