Crescent Energy Co (CRGY)

Financial leverage ratio

		Dec 31, 2024	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	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021
Total assets	US$ in thousands	9,333,220	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	3,737,830	3,760,470	3,891,220
Total stockholders’ equity	US$ in thousands	3,139,630	2,859,930	2,120,100	1,970,810	1,704,820	1,601,750	1,457,880	901,511	848,113	844,922	615,257	418,374	682,209	2,165,260	2,337,660	2,554,880
Financial leverage ratio		2.97	3.23	3.53	3.45	3.99	4.36	4.22	6.78	7.10	7.37	10.20	14.76	7.56	1.73	1.61	1.52

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 fluctuations over the past few years, indicating changes in the company's debt levels relative to its equity. Starting at 1.52 on March 31, 2021, the ratio gradually increased to 14.76 by March 31, 2022, which signifies a substantial rise in debt compared to equity. This sudden spike may raise concerns about the company's financial risk and ability to meet its obligations.

However, the financial leverage ratio decreased significantly in the subsequent periods, reaching 2.97 by December 31, 2024. This decline suggests a reduction in the company's reliance on debt financing and a strengthening of its equity position. A lower financial leverage ratio generally indicates a healthier financial structure and reduced risk of financial distress.

Overall, Crescent Energy Co's financial leverage ratio has experienced notable fluctuations, indicating changes in the company's capital structure and financial risk profile. Monitoring this ratio over time can provide insights into the company's borrowing practices, debt repayment capabilities, and overall financial health.