Chord Energy Corp (CHRD)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 6,926,150 | 6,631,080 | 3,026,790 | 7,499,250 | 7,626,140 |
| Total stockholders’ equity | US$ in thousands | 5,076,620 | 4,679,800 | 1,032,900 | 3,636,140 | 3,734,580 |
| Financial leverage ratio | 1.36 | 1.42 | 2.93 | 2.06 | 2.04 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $6,926,150K ÷ $5,076,620K
= 1.36
The financial leverage ratio of Chord Energy Corp has shown a declining trend over the past three years. As of December 31, 2021, the ratio was significantly high at 2.93, indicating that the company relied heavily on debt to finance its operations and investments.
However, there has been a notable improvement in the financial leverage position of the company in subsequent years. By December 31, 2023, the financial leverage ratio had decreased to 1.36, suggesting a reduced dependence on debt financing.
This decreasing trend in the financial leverage ratio indicates that Chord Energy Corp has been able to strengthen its financial position by potentially paying off debt, increasing equity, or a combination of both. Lower financial leverage ratios are generally seen as favorable as they indicate lower financial risk and greater financial stability.
Peer comparison
Dec 31, 2023