California Resources Corp (CRC)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 3,998,000 | 3,967,000 | 3,846,000 | 6,958,000 | 7,158,000 |
| Total stockholders’ equity | US$ in thousands | 2,219,000 | 1,864,000 | 1,688,000 | -389,000 | -361,000 |
| Financial leverage ratio | 1.80 | 2.13 | 2.28 | — | — |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,998,000K ÷ $2,219,000K
= 1.80
The financial leverage ratio of California Resources Corporation has shown a declining trend over the past three years. The ratio decreased from 2.28 in 2021 to 2.13 in 2022 and further decreased to 1.80 in 2023. A lower financial leverage ratio indicates that the company relies less on debt to finance its operations and investments, which can reduce financial risk.
However, it is important to note that a very low financial leverage ratio may also suggest underutilization of debt to potentially benefit from the tax advantages associated with debt financing. Further analysis of the company's overall financial health and capital structure would be necessary to fully evaluate the implications of the decreasing trend in the financial leverage ratio.
Peer comparison
Dec 31, 2023