CVR Energy Inc (CVI)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 2,100,000 | 1,400,000 | — | — | — |
| Total assets | US$ in thousands | 4,707,000 | 4,119,000 | 3,906,000 | 3,978,000 | 3,905,000 |
| Debt-to-assets ratio | 0.45 | 0.34 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $2,100,000K ÷ $4,707,000K
= 0.45
The debt-to-assets ratio of CVR Energy Inc has shown some fluctuation over the past five years. In 2023, the ratio increased to 0.46 from 0.39 in 2022, indicating that the company relied more on debt financing to fund its operations compared to the previous year. This could suggest a higher level of financial leverage and potentially higher financial risk.
Looking further back, the ratio was 0.42 in 2021 and 0.43 in 2020, displaying relatively stable levels of debt compared to total assets during those years. However, the ratio was significantly lower at 0.31 in 2019, indicating a lower reliance on debt financing at that time.
Overall, the upward trend in the debt-to-assets ratio in recent years may raise concerns about the company's increasing debt burden and its ability to manage debt obligations in the long term. It is important for stakeholders to closely monitor the company's debt levels and financial health to assess its ability to meet its financial obligations and sustain its operations effectively.
Peer comparison
Dec 31, 2023