CF Industries Holdings Inc (CF)
Financial leverage ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 13,466,000 | 13,843,000 | 13,775,000 | 13,861,000 | 14,376,000 | 13,543,000 | 13,537,000 | 13,398,000 | 13,313,000 | 13,280,000 | 13,423,000 | 13,782,000 | 12,375,000 | 11,766,000 | 12,007,000 | 12,011,000 | 12,023,000 | 11,931,000 | 11,950,000 | 12,441,000 |
| Total stockholders’ equity | US$ in thousands | 7,592,000 | 5,194,000 | 5,460,000 | 5,440,000 | 5,717,000 | 5,723,000 | 5,804,000 | 5,453,000 | 5,051,000 | 4,444,000 | 4,589,000 | 4,002,000 | 3,206,000 | 2,938,000 | 3,246,000 | 3,029,000 | 2,922,000 | 2,826,000 | 2,873,000 | 2,728,000 |
| Financial leverage ratio | 1.77 | 2.67 | 2.52 | 2.55 | 2.51 | 2.37 | 2.33 | 2.46 | 2.64 | 2.99 | 2.93 | 3.44 | 3.86 | 4.00 | 3.70 | 3.97 | 4.11 | 4.22 | 4.16 | 4.56 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $13,466,000K ÷ $7,592,000K
= 1.77
The financial leverage ratio of CF Industries Holdings Inc has shown a downward trend over the past few years, indicating a decreasing level of financial leverage. This ratio measures the company's debt levels relative to its equity, with a lower ratio suggesting a lower dependence on debt financing.
From March 31, 2020, to December 31, 2024, the financial leverage ratio decreased from 4.56 to 1.77. This significant reduction reflects the company's efforts to reduce its debt levels and strengthen its financial position.
The decreasing trend in the financial leverage ratio may suggest that CF Industries Holdings Inc has been managing its financial leverage effectively, perhaps by paying down debt or improving its profitability to reduce the need for debt financing. This can potentially improve the company's overall financial stability and reduce its financial risks.
Overall, a declining financial leverage ratio for CF Industries Holdings Inc indicates a positive shift towards a more conservative capital structure, which may enhance its resilience in the face of economic uncertainties and market fluctuations.
Peer comparison
Dec 31, 2024