John Wiley & Sons (WLY)
Financial leverage ratio
| Apr 30, 2024 | Apr 30, 2023 | Apr 30, 2022 | Apr 30, 2021 | Apr 30, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,725,500 | 3,108,810 | 3,361,700 | 3,446,440 | 3,168,790 |
| Total stockholders’ equity | US$ in thousands | 739,716 | 1,045,030 | 1,142,270 | 1,091,290 | 933,624 |
| Financial leverage ratio | 3.68 | 2.97 | 2.94 | 3.16 | 3.39 |
April 30, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,725,500K ÷ $739,716K
= 3.68
The financial leverage ratio of John Wiley & Sons has exhibited fluctuating trends over the past five years, ranging from 2.94 to 3.68. The ratio indicates the company's reliance on debt financing to support its operations and growth. In general, a higher financial leverage ratio suggests a higher level of debt relative to equity in the company's capital structure.
The increase in the financial leverage ratio from 2.94 in 2022 to 3.68 in 2024 indicates a significant rise in the company's debt relative to its equity during this period. This could imply that John Wiley & Sons has been taking on more debt to finance its operations, acquisitions, or other strategic initiatives.
Conversely, the decrease in the financial leverage ratio from 3.39 in 2020 to 2.94 in 2022 suggests that the company may have reduced its reliance on debt financing or increased its equity base during this period. This could indicate a more conservative approach to capital structure or improved financial health.
Overall, fluctuations in the financial leverage ratio of John Wiley & Sons reflect changes in the company's capital structure and financing decisions over the years. It is essential for investors and analysts to closely monitor these trends to assess the company's risk profile and financial stability.
Peer comparison
Apr 30, 2024