WD-40 Company (WDFC)
Financial leverage ratio
| Aug 31, 2024 | May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 449,039 | 443,610 | 442,021 | 430,606 | 437,966 | 438,050 | 450,337 | 441,493 | 434,295 | 429,123 | 423,146 | 421,439 | 430,203 | 427,887 | 405,987 | 386,398 | 362,637 | 385,951 | 333,331 | 317,491 |
| Total stockholders’ equity | US$ in thousands | 230,526 | 222,242 | 216,278 | 215,932 | 210,178 | 205,827 | 197,272 | 191,370 | 188,624 | 195,229 | 198,850 | 198,398 | 200,382 | 202,632 | 187,580 | 174,500 | 160,313 | 144,983 | 147,959 | 145,992 |
| Financial leverage ratio | 1.95 | 2.00 | 2.04 | 1.99 | 2.08 | 2.13 | 2.28 | 2.31 | 2.30 | 2.20 | 2.13 | 2.12 | 2.15 | 2.11 | 2.16 | 2.21 | 2.26 | 2.66 | 2.25 | 2.17 |
August 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $449,039K ÷ $230,526K
= 1.95
The financial leverage ratio of WD-40 Company has shown some fluctuations over the periods presented. The ratio indicates the proportion of the company's assets that are financed by debt rather than equity.
From November 2019 to August 2020, the financial leverage ratio ranged from 2.17 to 2.66, indicating a relatively high level of debt compared to equity during this period. However, from November 2020 to May 2021, there was a decrease in the ratio, suggesting a reduction in debt relative to equity.
The ratio increased again from May 2021 to August 2023, reaching a peak of 2.31 in November 2022 and remained above 2.00 until May 2023. This trend suggests an increasing reliance on debt to finance the company's operations and growth initiatives during this period.
Subsequently, from May 2023 to August 2024, the financial leverage ratio decreased gradually to 1.95. This reduction may indicate a shift towards a more balanced capital structure with a lower proportion of debt financing compared to equity.
Overall, the fluctuation in WD-40 Company's financial leverage ratio reflects changing levels of debt and equity financing over time, highlighting the company's management of its capital structure to support its business objectives and financial health.
Peer comparison
Aug 31, 2024