John Wiley & Sons (WLY)
Financial leverage ratio
| Apr 30, 2024 | Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | Jan 31, 2020 | Oct 31, 2019 | Jul 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,725,500 | 2,707,290 | 2,779,040 | 2,925,960 | 3,108,810 | 3,150,260 | 3,128,370 | 3,229,310 | 3,361,700 | 3,377,980 | 3,346,030 | 3,362,800 | 3,446,440 | 3,426,360 | 3,020,400 | 3,068,950 | 3,168,790 | 3,324,580 | 3,082,770 | 3,120,070 |
| Total stockholders’ equity | US$ in thousands | 739,716 | 748,306 | 867,276 | 937,206 | 1,045,030 | 1,026,900 | 1,077,810 | 1,082,330 | 1,142,270 | 1,119,520 | 1,106,660 | 1,077,900 | 1,091,290 | 1,063,800 | 1,020,210 | 973,745 | 933,624 | 1,197,240 | 1,179,000 | 1,132,010 |
| Financial leverage ratio | 3.68 | 3.62 | 3.20 | 3.12 | 2.97 | 3.07 | 2.90 | 2.98 | 2.94 | 3.02 | 3.02 | 3.12 | 3.16 | 3.22 | 2.96 | 3.15 | 3.39 | 2.78 | 2.61 | 2.76 |
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 some fluctuation over the past two years. The ratio peaked at 3.68 in April 2024 and reached its lowest point at 2.78 in October 2019. Generally, the company's financial leverage ratio has been on an upward trend since July 2020, indicating an increase in the company's reliance on debt to finance its operations and growth.
The ratio measures the extent to which the company is using debt to finance its assets. A higher financial leverage ratio suggests a higher level of debt relative to equity in the company's capital structure. While higher leverage can amplify returns on equity when the company is performing well, it also increases the risk of financial distress if the company faces difficulties in meeting its debt obligations.
It would be prudent for investors and stakeholders to carefully monitor John Wiley & Sons' financial leverage ratio, as sustained high levels of leverage could pose risks to the company's financial stability and ability to navigate economic challenges. A thorough understanding of the company's debt management strategies and overall financial health would be essential for making informed investment decisions.
Peer comparison
Apr 30, 2024