Chemours Co (CC)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 8,251,000 | 7,640,000 | 7,550,000 | 7,082,000 | 7,258,000 |
| Total stockholders’ equity | US$ in thousands | 737,000 | 1,107,000 | 1,081,000 | 813,000 | 689,000 |
| Financial leverage ratio | 11.20 | 6.90 | 6.98 | 8.71 | 10.53 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $8,251,000K ÷ $737,000K
= 11.20
The financial leverage ratio measures the extent to which a company uses debt to finance its operations. Chemours Co's financial leverage ratio has fluctuated over the past five years, ranging from 6.90 to 11.20.
In 2023, Chemours Co's financial leverage ratio increased to 11.20, indicating a higher level of debt relative to equity compared to the previous year. This could imply increased financial risk as the company relies more on debt financing.
The ratio was relatively stable in 2021 and 2022, hovering around 6.98 and 6.90, respectively. This suggests a more balanced capital structure with moderate reliance on debt.
In 2020 and 2019, the financial leverage ratio was higher at 8.71 and 10.53, respectively. This indicates a higher proportion of debt in the company's capital structure during those years, potentially signaling greater financial risk and higher interest obligations.
Overall, the trend in Chemours Co's financial leverage ratio indicates variability in the company's debt levels over the years, with implications for its risk profile and financial stability.
Peer comparison
Dec 31, 2023