California Resources Corp (CRC)
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 | 3,998,000 | 3,952,000 | 3,900,000 | 4,000,000 | 3,967,000 | 3,986,000 | 4,018,000 | 4,032,000 | 3,846,000 | 3,342,000 | 3,240,000 | 3,180,000 | 3,074,000 | 4,856,000 | 4,930,000 | 4,974,000 | 6,958,000 | 7,035,000 | 7,032,000 | 7,230,000 |
| Total stockholders’ equity | US$ in thousands | 2,219,000 | 2,050,000 | 2,110,000 | 2,092,000 | 1,864,000 | 1,855,000 | 1,517,000 | 1,433,000 | 1,688,000 | 1,052,000 | 893,000 | 1,046,000 | 1,138,000 | -2,341,000 | -2,452,000 | -2,183,000 | -389,000 | -308,000 | -408,000 | -426,000 |
| Financial leverage ratio | 1.80 | 1.93 | 1.85 | 1.91 | 2.13 | 2.15 | 2.65 | 2.81 | 2.28 | 3.18 | 3.63 | 3.04 | 2.70 | — | — | — | — | — | — | — |
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 fluctuated over the last five quarters, ranging from a low of 1.80 in Q4 2023 to a high of 2.13 in Q4 2022. This ratio indicates the level of debt used by the company to finance its operations relative to its equity.
A financial leverage ratio above 1 suggests that the company is using more debt financing than equity financing. A decreasing trend in the ratio over time could indicate that the company is reducing its reliance on debt to fund its operations, which may be seen as a positive sign by investors and creditors.
Conversely, an increasing trend in the ratio may raise concerns about the company's ability to service its debt obligations, as higher leverage levels can increase financial risk. However, it's essential to consider other factors such as the company's overall financial health, industry norms, and economic conditions when interpreting changes in the financial leverage ratio.
Therefore, California Resources Corporation's financial leverage ratio trend warrants further analysis and scrutiny to assess its impact on the company's stability and financial health.
Peer comparison
Dec 31, 2023