HF Sinclair Corp (DINO)
Financial leverage ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 17,716,300 | 18,901,800 | 18,197,000 | 18,006,000 | 18,125,500 | 18,226,300 | 19,177,900 | 17,733,100 |
| Total stockholders’ equity | US$ in thousands | 10,169,100 | 9,824,680 | 9,708,950 | 9,270,660 | 9,243,820 | 9,015,280 | 9,109,710 | 8,116,230 |
| Financial leverage ratio | 1.74 | 1.92 | 1.87 | 1.94 | 1.96 | 2.02 | 2.11 | 2.18 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $17,716,300K ÷ $10,169,100K
= 1.74
The financial leverage ratio for HF Sinclair Corp. has shown a downward trend over the past four quarters, decreasing from 2.18 in Q1 2022 to 1.74 in Q4 2023. This indicates that the company's reliance on debt to finance its operations has decreased over this period.
A financial leverage ratio of 1.74 in Q4 2023 means that the company has $1.74 in debt for every $1 of equity. While this ratio has been declining, it is still above 1, indicating that the company has more debt than equity in its capital structure.
The decreasing trend in the financial leverage ratio could signify that the company is reducing its reliance on debt financing, which could result in lower interest expenses and potentially lower financial risk. However, it is essential to assess the overall impact on the company's profitability and liquidity as well.
Overall, the decreasing financial leverage ratio of HF Sinclair Corp. suggests a positive trend in terms of reducing debt levels and potential financial risk. It would be important to continue monitoring the trend to ensure sustainable financial health.