CVR Energy Inc (CVI)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 4,707,000 | 4,119,000 | 3,906,000 | 3,978,000 | 3,905,000 |
| Total stockholders’ equity | US$ in thousands | 847,000 | 531,000 | 553,000 | 1,019,000 | 1,393,000 |
| Financial leverage ratio | 5.56 | 7.76 | 7.06 | 3.90 | 2.80 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $4,707,000K ÷ $847,000K
= 5.56
The financial leverage ratio of CVR Energy Inc has displayed fluctuating trends over the past five years. The ratio was relatively low in 2019 at 2.80, indicating a lower level of financial leverage. However, there was a notable increase in the ratio in 2020 to 3.90, suggesting an increase in leverage that year.
Subsequently, in 2021 and 2022, the financial leverage ratio continued to rise to 7.06 and 7.76, respectively, indicating a substantial increase in the company's financial leverage. The significant increase in these two years could be reflective of changes in the company's capital structure or increased borrowing.
However, in 2023, there was a slight decrease in the financial leverage ratio to 5.56, which may suggest a slight reduction in the company's level of financial leverage compared to the previous year.
Overall, the trend in CVR Energy Inc's financial leverage ratio indicates fluctuations with periods of both increases and decreases in financial leverage over the past five years. Monitoring this ratio can provide insights into the company's capital structure and financial risk management strategies.
Peer comparison
Dec 31, 2023