Civitas Resources Inc (CIVI)
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 | 14,944,100 | 15,007,800 | 15,041,300 | 15,084,000 | 14,097,300 | 12,841,600 | 10,171,000 | 7,675,050 | 7,971,400 | 7,688,800 | 7,414,430 | 7,033,750 | 6,741,030 | 1,937,080 | 1,916,180 | 1,208,290 | 1,182,810 | 1,148,780 | 1,190,230 | 1,264,070 |
| Total stockholders’ equity | US$ in thousands | 6,628,750 | 6,668,480 | 6,586,020 | 6,634,930 | 6,181,320 | 6,020,630 | 5,046,690 | 5,101,750 | 5,373,920 | 5,253,520 | 4,992,550 | 4,637,530 | 4,655,000 | 1,417,250 | 1,385,110 | 1,046,760 | 1,045,250 | 982,952 | 978,038 | 1,016,420 |
| Financial leverage ratio | 2.25 | 2.25 | 2.28 | 2.27 | 2.28 | 2.13 | 2.02 | 1.50 | 1.48 | 1.46 | 1.49 | 1.52 | 1.45 | 1.37 | 1.38 | 1.15 | 1.13 | 1.17 | 1.22 | 1.24 |
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 a fluctuating trend over the years, indicating changes in the company's financial structure and risk profile. The ratio increased from 1.24 in March 2020 to 2.25 by December 2024. This suggests that the company has been gradually taking on more debt relative to its equity.
The ratio surpassed the industry average of 2 (considered as a benchmark) by June 2022 and has consistently remained above this level since then. This indicates that the company has been relying more on debt financing compared to equity, potentially increasing its financial risk and leverage.
The peak ratio of 2.28 in December 2023 and March 2024 signals a significant level of financial leverage, which could expose the company to higher risks during economic downturns or periods of financial instability.
Overall, the increasing trend in the financial leverage ratio of Civitas Resources Inc suggests a higher level of indebtedness and reliance on borrowed funds to support its operations and growth strategies. Investors and creditors should closely monitor this ratio to assess the company's ability to meet its financial obligations and manage its debt levels effectively.
Peer comparison
Dec 31, 2024