Crescent Energy Co (CRGY)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 2.97 | 3.99 | 7.10 | 7.56 | 1.44 |
Crescent Energy Co has consistently maintained a strong solvency position based on the solvency ratios provided. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have all been reported as 0.00 for the years 2020 to 2024, indicating that the company has not taken on any debt relative to its assets, capital, or equity during this period.
The Financial leverage ratio, on the other hand, shows some fluctuation but generally decreasing trend over the years. It was 1.44 in 2020, increased sharply to 7.56 in 2021, then decreased to 7.10 in 2022, further declining to 3.99 in 2023, and finally reaching 2.97 in 2024. Although there was a significant increase in the financial leverage ratio in 2021, the subsequent years show improvement, with the ratio trending downwards. This indicates that the company's reliance on debt financing has decreased over time, leading to a more favorable financial leverage position.
Overall, Crescent Energy Co's solvency ratios suggest that the company has effectively managed its debt levels and maintained a strong financial position, demonstrating stability and responsible financial management.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 0.22 | 3.37 | 6.39 | -7.52 | -4.67 |
Interest coverage is a financial ratio that indicates a company's ability to meet its interest obligations from its operating income. A higher interest coverage ratio is generally preferred as it suggests that the company is more capable of servicing its debt.
Analyzing the interest coverage of Crescent Energy Co over the past five years shows fluctuations in its ability to cover its interest payments.
- As of December 31, 2020, the interest coverage ratio was -4.67, indicating that the company's operating income was insufficient to cover its interest expenses, raising concerns about its financial health.
- By December 31, 2021, the interest coverage ratio further deteriorated to -7.52, signaling a worsening situation regarding the company's ability to meet its interest obligations.
- However, a significant improvement was observed by December 31, 2022, with an interest coverage ratio of 6.39, showing that the company's operating income had increased substantially, leading to a more comfortable position in meeting its interest payments.
- The interest coverage ratio decreased to 3.37 by December 31, 2023, indicating a slight reduction in the company's ability to cover its interest expenses compared to the previous year.
- The interest coverage ratio dropped significantly to 0.22 as of December 31, 2024, suggesting that Crescent Energy Co may be facing challenges in generating sufficient operating income to meet its interest obligations, possibly indicating financial distress.
Overall, the trend in Crescent Energy Co's interest coverage ratio shows variability in its ability to service its debt over the years, with negative values in the early years followed by some improvement and then a sharp decline in the most recent year. It is essential for the company to closely monitor its financial performance and take necessary actions to ensure sufficient income to cover its interest expenses in the future.