CVR Energy Inc (CVI)
Debt-to-capital ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 1,500,000 | 2,100,000 | 1,400,000 | — | — |
| Total stockholders’ equity | US$ in thousands | 703,000 | 847,000 | 531,000 | 553,000 | 1,019,000 |
| Debt-to-capital ratio | 0.68 | 0.71 | 0.73 | 0.00 | 0.00 |
December 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,500,000K ÷ ($1,500,000K + $703,000K)
= 0.68
The debt-to-capital ratio of CVR Energy Inc has shown a steady increase over the years. As of December 31, 2020, the ratio was reported as 0.00, indicating that the company had no debt relative to its total capital. However, there was a significant shift in the following years, with the ratio rising to 0.73 as of December 31, 2022, and subsequently decreasing to 0.71 by December 31, 2023, and to 0.68 by December 31, 2024.
This trend suggests that CVR Energy Inc has started to utilize debt as a component of its capital structure, with the ratio indicating that approximately 68% of the company's capital was financed by debt as of December 31, 2024. A rising debt-to-capital ratio may signal an increased financial risk, as higher debt levels can lead to higher interest expenses and potential difficulties in debt repayment. It is important for stakeholders to closely monitor this ratio to assess the company's leverage and financial stability.
Peer comparison
Dec 31, 2024