Peabody Energy Corp (BTU)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 5,953,700 | 5,962,100 | 5,610,800 | 4,949,800 | 4,667,100 |
| Total stockholders’ equity | US$ in thousands | 3,650,500 | 3,547,000 | 3,231,300 | 1,761,800 | 929,600 |
| Financial leverage ratio | 1.63 | 1.68 | 1.74 | 2.81 | 5.02 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $5,953,700K ÷ $3,650,500K
= 1.63
The financial leverage ratio of Peabody Energy Corp has shown a significant decreasing trend over the past few years, indicating an improvement in the company's financial leverage position. As of December 31, 2020, the ratio stood at 5.02, reflecting a higher level of financial leverage. However, by December 31, 2024, the ratio had declined to 1.63, signaling a reduced reliance on debt financing compared to equity.
This decreasing trend in the financial leverage ratio suggests that Peabody Energy Corp has been able to optimize its capital structure by reducing its debt levels relative to its equity. A lower financial leverage ratio generally indicates a lower financial risk for the company, as it implies a reduced dependence on borrowings to finance its operations and investments.
Overall, the improving trend in Peabody Energy Corp's financial leverage ratio signals a stronger financial position and better risk management strategy, which may enhance the company's long-term sustainability and growth prospects.
Peer comparison
Dec 31, 2024