CVR Energy Inc (CVI)

Debt-to-capital 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 stockholders’ equity US$ in thousands 847,000 531,000 553,000 1,019,000 1,393,000
Debt-to-capital ratio 0.71 0.73 0.00 0.00 0.00

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $2,100,000K ÷ ($2,100,000K + $847,000K)
= 0.71

The debt-to-capital ratio of CVR Energy Inc has exhibited some fluctuations over the past five years. The ratio stood at 0.72 as of December 31, 2023, a decrease from the previous year's figure of 0.75. This ratio indicates that debt accounts for 72% of the company's capital structure, while equity represents the remaining 28%.

In general, a higher debt-to-capital ratio suggests a higher level of financial leverage and risk for the company as a significant portion of its capital comes from debt. CVR Energy Inc's ratio has been trending upwards since 2020 when it was at 0.46, indicating an increasing reliance on debt to finance its operations and investments.

It is essential for stakeholders to monitor this ratio closely as a high level of debt can impact the company's financial stability and ability to meet its debt obligations. An increasing trend in the debt-to-capital ratio may raise concerns about the company's ability to manage its debt levels effectively and service its debt in the long term.


Peer comparison

Dec 31, 2023