Comstock Resources Inc (CRK)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 6,253,620 | 5,694,260 | 4,668,230 | 4,623,980 | 4,657,120 |
| Total stockholders’ equity | US$ in thousands | 2,358,410 | 2,278,310 | 1,012,780 | 1,266,770 | 1,143,020 |
| Financial leverage ratio | 2.65 | 2.50 | 4.61 | 3.65 | 4.07 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $6,253,620K ÷ $2,358,410K
= 2.65
The financial leverage ratio measures the extent to which a company relies on debt to finance its operations and investments. In the case of Comstock Resources, Inc., the financial leverage ratio has fluctuated over the past five years, indicating changes in the company's capital structure.
The trend shows that in 2023, the financial leverage ratio increased to 2.65 from 2.50 in 2022, suggesting an increase in the company's reliance on debt relative to equity. This may indicate increased financial risk as higher leverage can magnify the impacts of fluctuations in earnings or market conditions on the company's financial health.
Comparing 2023 to previous years, the financial leverage ratio seems to have moderated from the high of 3.93 in 2021 and 3.21 in 2020, but is slightly higher than 3.06 in 2019. This indicates that while the company may have taken steps to reduce its debt relative to equity in recent years, it remains more leveraged compared to the earlier period.
Overall, the analysis of Comstock Resources, Inc.'s financial leverage ratio suggests that the company has made some adjustments to its capital structure in recent years, but still maintains a significant level of leverage, which could expose it to financial risks associated with high debt levels. Tracking changes in this ratio over time can provide insights into the company's financial health and risk profile.
Peer comparison
Dec 31, 2023