CF Industries Holdings Inc (CF)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 14,376,000 | 13,313,000 | 12,375,000 | 12,023,000 | 12,172,000 |
| Total stockholders’ equity | US$ in thousands | 5,717,000 | 5,051,000 | 3,206,000 | 2,922,000 | 2,897,000 |
| Financial leverage ratio | 2.51 | 2.64 | 3.86 | 4.11 | 4.20 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $14,376,000K ÷ $5,717,000K
= 2.51
The financial leverage ratio for CF Industries Holdings Inc has exhibited a fluctuating trend over the past five years. The ratio decreased from 4.20 in 2019 to 2.51 in 2023. This indicates that the company's reliance on debt to finance its operations has decreased over the period. However, the ratio did show an upward trend in 2021 and 2022, reaching 3.86 and 2.64, respectively, before declining again in 2023.
A lower financial leverage ratio suggests that the company has a lower proportion of debt in its capital structure compared to equity, which could indicate a lower financial risk. In contrast, a higher ratio indicates a higher level of financial risk due to increased debt obligations.
Overall, the decreasing trend in CF Industries Holdings Inc's financial leverage ratio from 2019 to 2023 indicates a potentially improving financial risk profile and reduced reliance on debt financing for the company's operations.
Peer comparison
Dec 31, 2023