Peabody Energy Corp (BTU)
Financial leverage ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 5,962,100 | 5,722,200 | 5,828,100 | 5,799,900 | 5,610,800 | 5,431,000 | 5,299,900 | 4,943,800 | 4,949,800 | 4,442,500 | 4,453,400 | 4,486,300 | 4,667,100 | 4,860,900 | 4,948,800 | 6,230,400 | 6,542,800 | 6,792,500 | 7,121,200 | 7,287,500 |
| Total stockholders’ equity | US$ in thousands | 3,547,000 | 3,458,600 | 3,444,700 | 3,474,700 | 3,231,300 | 2,611,200 | 2,248,200 | 1,852,800 | 1,761,800 | 981,900 | 896,500 | 839,500 | 929,600 | 1,050,700 | 939,300 | 2,476,500 | 2,613,800 | 2,939,600 | 3,176,100 | 3,214,700 |
| Financial leverage ratio | 1.68 | 1.65 | 1.69 | 1.67 | 1.74 | 2.08 | 2.36 | 2.67 | 2.81 | 4.52 | 4.97 | 5.34 | 5.02 | 4.63 | 5.27 | 2.52 | 2.50 | 2.31 | 2.24 | 2.27 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $5,962,100K ÷ $3,547,000K
= 1.68
Peabody Energy Corp's financial leverage ratio has fluctuated over the past several quarters, ranging from a low of 1.65 in September 2023 to a high of 5.34 in June 2021. This ratio indicates the company's level of financial leverage or the extent to which it relies on debt to finance its operations. A higher financial leverage ratio suggests a greater reliance on debt, which can increase financial risk but may also amplify returns on equity.
Peabody Energy Corp's financial leverage ratio spiked significantly in the second quarter of 2021 and remained elevated throughout 2021, peaking at 5.34 in June 2021. This sudden increase may indicate a period of high debt accumulation or asset write-downs that impacted the company's capital structure. The subsequent decline in the ratio from late 2021 to mid-2022 suggests efforts to reduce debt levels or improve equity positions.
Overall, the trend in Peabody Energy Corp's financial leverage ratio demonstrates fluctuations in the company's capital structure and debt management strategies. Analysts and investors should closely monitor changes in this ratio to assess the company's financial risk and leverage position.
Peer comparison
Dec 31, 2023