CVR Energy Inc (CVI)
Financial leverage ratio
| Dec 31, 2024 | Sep 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 4,263,000 | 3,878,000 | 4,093,000 | 4,707,000 | 4,421,000 | 4,217,000 | 4,208,000 | 4,119,000 | 4,206,000 | 4,671,000 | 4,345,000 | 3,906,000 | 3,872,000 | 3,798,000 | 4,188,000 | 3,978,000 | 3,876,000 | 3,928,000 | 4,125,000 | 3,905,000 |
| Total stockholders’ equity | US$ in thousands | 703,000 | 675,000 | 879,000 | 847,000 | 957,000 | 755,000 | 675,000 | 531,000 | 560,000 | 769,000 | 644,000 | 553,000 | 567,000 | 483,000 | 981,000 | 1,019,000 | 1,084,000 | 1,180,000 | 1,225,000 | 1,393,000 |
| Financial leverage ratio | 6.06 | 5.75 | 4.66 | 5.56 | 4.62 | 5.59 | 6.23 | 7.76 | 7.51 | 6.07 | 6.75 | 7.06 | 6.83 | 7.86 | 4.27 | 3.90 | 3.58 | 3.33 | 3.37 | 2.80 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $4,263,000K ÷ $703,000K
= 6.06
The financial leverage ratio of CVR Energy Inc has shown fluctuation over the analyzed period. The ratio measures the extent to which the company is relying on debt to finance its operations and growth. A higher financial leverage ratio indicates a higher proportion of debt in the company's capital structure.
From December 31, 2019, to June 30, 2021, the financial leverage ratio steadily increased from 2.80 to 7.86, indicating a significant increase in debt usage relative to equity. This could suggest potential financial risk associated with high leverage as it magnifies the impact of losses or declines in revenues.
Subsequently, there was a slight decrease in the ratio from June 30, 2021, to September 30, 2023. This decline may indicate efforts by the company to manage its debt levels or improve its financial position.
However, from September 30, 2023, to December 31, 2024, the financial leverage ratio increased again. This rise suggests a return to higher reliance on debt financing, which could pose challenges in terms of debt repayment obligations and interest costs.
Overall, the trend in CVR Energy Inc's financial leverage ratio indicates fluctuations in the company's capital structure and debt management practices. It is important for stakeholders to monitor these changes to assess the company's financial risk and stability.
Peer comparison
Dec 31, 2024