CF Industries Holdings Inc (CF)
Financial leverage ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 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 | 12,172,000 | 12,902,000 | 12,863,000 | 12,942,000 |
| Total stockholders’ equity | US$ in thousands | 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 | 2,897,000 | 2,980,000 | 3,066,000 | 2,955,000 |
| Financial leverage ratio | 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 | 4.20 | 4.33 | 4.20 | 4.38 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $14,376,000K ÷ $5,717,000K
= 2.51
The financial leverage ratio of CF Industries Holdings Inc has displayed fluctuations over the past eight quarters. The ratio has ranged from a low of 2.33 in Q2 2023 to a high of 3.44 in Q1 2022. A higher financial leverage ratio indicates a higher degree of financial leverage, suggesting that the company is relying more on debt to finance its operations and investments. On the other hand, a lower ratio implies a lower dependence on debt for financing.
The trend over the past year shows a general decrease in the financial leverage ratio from Q1 2022 to Q2 2023, indicating a potential reduction in the company's reliance on debt financing. This downward trend may be viewed positively by investors and analysts as it signifies a potentially lower financial risk for the company.
However, it is essential to note that a lower financial leverage ratio does not always indicate better financial health, as a certain level of leverage can be beneficial for maximizing returns to shareholders. Therefore, a thorough assessment of the company's overall financial health, capital structure, and industry benchmarks is necessary to fully understand the implications of CF Industries Holdings Inc's financial leverage ratio fluctuations.
Peer comparison
Dec 31, 2023