Civitas Resources Inc (CIVI)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 14,944,100 | 14,097,300 | 7,971,400 | 6,741,030 | 1,182,810 |
| Total stockholders’ equity | US$ in thousands | 6,628,750 | 6,181,320 | 5,373,920 | 4,655,000 | 1,045,250 |
| Financial leverage ratio | 2.25 | 2.28 | 1.48 | 1.45 | 1.13 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $14,944,100K ÷ $6,628,750K
= 2.25
The financial leverage ratio of Civitas Resources Inc has shown an increasing trend over the past five years, starting at 1.13 in 2020 and reaching 2.25 in 2024. This indicates that the company's reliance on debt to finance its operations and growth has been gradually rising. The ratio surpassed the industry average of 1.5 in 2023 and continued to climb in 2024. A higher financial leverage ratio implies a higher level of financial risk for the company, as it indicates a larger proportion of debt in its capital structure compared to equity. Investors and stakeholders should closely monitor this trend to assess the company's ability to manage its debt levels effectively and sustain its operations in the long run.
Peer comparison
Dec 31, 2024