Crescent Energy Co (CRGY)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 9,333,220 | 6,803,340 | 6,019,850 | 5,157,460 | 3,907,370 |
| Total stockholders’ equity | US$ in thousands | 3,139,630 | 1,704,820 | 848,113 | 682,209 | 2,716,890 |
| Financial leverage ratio | 2.97 | 3.99 | 7.10 | 7.56 | 1.44 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $9,333,220K ÷ $3,139,630K
= 2.97
The financial leverage ratio of Crescent Energy Co has shown significant fluctuations over the past five years. At the end of 2020, the ratio was relatively low at 1.44, indicating a conservative level of debt usage compared to equity. However, by the end of 2021, the ratio spiked to 7.56, signaling a substantial increase in debt relative to equity, which may raise concerns about the company's financial risk and leverage.
In 2022, the financial leverage ratio decreased slightly to 7.10, but it remained at a high level, indicating that Crescent Energy Co continues to rely heavily on debt financing. The ratio then decreased further to 3.99 by the end of 2023, suggesting a potential effort to reduce leverage and improve the company's financial position.
By the end of 2024, the financial leverage ratio dropped even more significantly to 2.97, indicating a continued trend towards lower leverage and potentially a stronger financial standing for Crescent Energy Co. Overall, the company has experienced fluctuations in its financial leverage over the years, with recent efforts seemingly focused on reducing debt levels and improving its debt-to-equity ratio.
Peer comparison
Dec 31, 2024