EQT Corporation (EQT)

Financial leverage ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total assets	US$ in thousands	25,285,100	22,669,900	21,607,400	18,113,500	18,809,200
Total stockholders’ equity	US$ in thousands	14,773,200	11,172,500	9,954,760	9,255,240	9,803,590
Financial leverage ratio		1.71	2.03	2.17	1.96	1.92

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $25,285,100K ÷ $14,773,200K
= 1.71

The financial leverage ratio of EQT Corp has fluctuated over the past five years, ranging from a low of 1.71 in 2023 to a high of 2.15 in 2021. This ratio indicates the extent to which the company relies on debt to finance its operations and investments. A higher financial leverage ratio suggests a higher proportion of debt in the company's capital structure, which can amplify returns in good times but also increases financial risk, especially during economic downturns.

In the case of EQT Corp, the decreasing trend in the financial leverage ratio from 2021 to 2023 indicates a potential reduction in the company's reliance on debt to fund its activities. Lowering the financial leverage ratio can indicate increased financial stability and reduced risk of financial distress, as the company may be relying more on equity financing or generating more internal funds to support its operations.

Overall, while monitoring the financial leverage ratio provides insights into the capital structure and risk profile of a company, it is important to consider other financial metrics and qualitative factors to assess the overall financial health and performance of EQT Corp.