Chemours Co (CC)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 7,515,000 | 8,251,000 | 7,640,000 | 7,550,000 | 7,082,000 |
| Total stockholders’ equity | US$ in thousands | 604,000 | 737,000 | 1,107,000 | 1,081,000 | 813,000 |
| Financial leverage ratio | 12.44 | 11.20 | 6.90 | 6.98 | 8.71 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $7,515,000K ÷ $604,000K
= 12.44
The financial leverage ratio for Chemours Co has shown a fluctuating trend over the years. As of December 31, 2020, the ratio stood at 8.71, indicating a high level of financial leverage. However, in the following years, the ratio decreased steadily to 6.98 as of December 31, 2021, and further to 6.90 as of December 31, 2022, suggesting a reduction in the company's reliance on debt to finance its operations.
The trend took a significant turn in the subsequent years, with the financial leverage ratio increasing considerably to 11.20 as of December 31, 2023, and further to 12.44 as of December 31, 2024. These higher ratios indicate a heightened level of financial leverage, potentially signaling an increased use of debt in the company's capital structure.
Overall, the fluctuating nature of Chemours Co's financial leverage ratio suggests varying levels of debt utilization over the years, which can impact the company's risk profile and financial stability. It would be important for stakeholders to closely monitor this ratio to assess the company's ability to meet its debt obligations and manage its financial risk effectively.
Peer comparison
Dec 31, 2024