Crescent Energy Co (CRGY)

Financial leverage ratio

		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
Total assets	US$ in thousands	9,250,430	7,480,820	6,797,920	6,803,340	6,986,430	6,148,260	6,111,710	6,019,850	6,229,590	6,273,670	6,174,490	5,157,460
Total stockholders’ equity	US$ in thousands	4,195,430	3,587,090	3,542,960	3,635,720	3,515,940	3,517,420	3,523,650	3,298,990	3,268,980	2,788,720	2,608,040	3,019,660
Financial leverage ratio		2.20	2.09	1.92	1.87	1.99	1.75	1.73	1.82	1.91	2.25	2.37	1.71

September 30, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $9,250,430K ÷ $4,195,430K
= 2.20

The financial leverage ratio of Crescent Energy Co has shown some fluctuation over the past few quarters. The ratio, which measures the proportion of a company's debt to its equity, has generally been on an increasing trend since the beginning of 2022, peaking at 2.37 in the second quarter of 2022 before decreasing slightly to 1.71 in the fourth quarter of the same year.

In recent quarters, the financial leverage ratio has been hovering around the 2.00 mark, indicating that the company has been using a moderate level of debt to finance its operations. A ratio above 1 suggests that the company has more debt than equity in its capital structure.

The increase in the financial leverage ratio could indicate that Crescent Energy Co has been taking on more debt to fund its expansion or investment activities. This can enhance the company's returns on equity if the projects funded by debt generate higher returns than the cost of the debt. However, it also implies higher financial risk for the company, as a higher proportion of debt can lead to increased interest expenses and greater vulnerability to economic downturns.

It would be prudent for stakeholders to closely monitor Crescent Energy Co's financial leverage ratio and ensure that the company maintains a healthy balance between debt and equity to support its long-term financial stability and growth.