CF Industries Holdings Inc (CF)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 13,466,000 | 14,376,000 | 13,313,000 | 12,375,000 | 12,023,000 |
| Total stockholders’ equity | US$ in thousands | 4,985,000 | 5,717,000 | 5,051,000 | 3,206,000 | 2,922,000 |
| Financial leverage ratio | 2.70 | 2.51 | 2.64 | 3.86 | 4.11 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $13,466,000K ÷ $4,985,000K
= 2.70
Financial leverage ratio measures the extent to which a company relies on debt financing relative to its equity. In the case of CF Industries Holdings Inc, the trend in the financial leverage ratio shows a decreasing trend over the years.
As of December 31, 2020, the financial leverage ratio was 4.11, indicating that the company had relatively high debt levels compared to equity. However, by December 31, 2024, this ratio had decreased to 2.70, signaling a reduction in the company's reliance on debt financing and improvement in its financial leverage position.
The declining trend in the financial leverage ratio for CF Industries Holdings Inc suggests that the company has been actively managing its debt levels, potentially reducing financial risk and improving overall financial stability. This trend may indicate a more conservative approach to capital structure and a stronger financial position.
Peer comparison
Dec 31, 2024