HF Sinclair Corp (DINO)
Debt-to-capital ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 2,739,080 | 2,861,960 | 2,888,470 | 2,932,990 | 2,948,510 |
| Total stockholders’ equity | US$ in thousands | 10,169,100 | 9,824,680 | 9,708,950 | 9,270,660 | 9,243,820 |
| Debt-to-capital ratio | 0.21 | 0.23 | 0.23 | 0.24 | 0.24 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $2,739,080K ÷ ($2,739,080K + $10,169,100K)
= 0.21
The debt-to-capital ratio of HF Sinclair Corp. has shown a gradual decrease over the last eight quarters, indicating an improvement in the company's overall financial leverage. The ratio has decreased from 0.29 in Q1 2022 to 0.21 in Q4 2023. This downward trend suggests that the company is relying less on debt to finance its operations and investments relative to its total capital structure.
A lower debt-to-capital ratio generally signals a lower financial risk for the company as it indicates a lower proportion of debt in relation to total capital. This could be seen as a positive sign by lenders and investors, as lower debt levels typically provide greater financial flexibility and stability in times of economic uncertainty.
HF Sinclair Corp.'s ability to reduce its debt-to-capital ratio over the past quarters may be attributed to various factors such as improved profitability, effective cost management, or strategic debt repayments. However, it would be important to further investigate the reasons behind this trend to assess the company's overall financial health and sustainability in the long run.