Peabody Energy Corp (BTU)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 5,962,100 | 5,610,800 | 4,949,800 | 4,667,100 | 6,542,800 |
| Total stockholders’ equity | US$ in thousands | 3,547,000 | 3,231,300 | 1,761,800 | 929,600 | 2,613,800 |
| Financial leverage ratio | 1.68 | 1.74 | 2.81 | 5.02 | 2.50 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $5,962,100K ÷ $3,547,000K
= 1.68
The financial leverage ratio of Peabody Energy Corp has exhibited fluctuations over the past five years. The ratio stood at 1.68 in 2023, indicating that the company has $1.68 of debt for every $1 of equity. This suggests a moderate level of financial leverage.
Comparing this to previous years, we observe a decreasing trend from 2021 to 2023. In 2021, the ratio was significantly higher at 2.81, signifying a higher level of debt relative to equity in that year.
The ratio peaked in 2020 at 5.02, indicating a substantially higher reliance on debt financing compared to equity. This high level of financial leverage in 2020 may have raised concerns about the company's ability to service its debt obligations.
The ratio improved in 2023 compared to 2022, suggesting that the company may have reduced its debt levels or increased its equity position.
Overall, while the financial leverage ratio for Peabody Energy Corp has fluctuated in recent years, the decreasing trend from 2021 to 2023 indicates a potential improvement in the company's leverage position and a move towards a more balanced capital structure.
Peer comparison
Dec 31, 2023