GE Vernova LLC (GEV)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Total assets | US$ in thousands | 46,121,000 | 44,471,000 | — |
| Total stockholders’ equity | US$ in thousands | 7,416,000 | 10,650,000 | — |
| Financial leverage ratio | 6.22 | 4.18 | — |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $46,121,000K ÷ $7,416,000K
= 6.22
The financial leverage ratio of GE Vernova LLC has increased significantly over the past two years. As of December 31, 2023, the financial leverage ratio stands at 6.22, compared to 4.18 as of December 31, 2022. This suggests that the company's reliance on debt to finance its operations and investments has increased substantially. The absence of a financial leverage ratio for December 31, 2021, precludes a direct comparison for that period.
A higher financial leverage ratio typically indicates a higher level of financial risk for the company, as it implies a higher proportion of debt in its capital structure. It is essential for GE Vernova LLC to carefully manage its debt levels and ensure that it can generate sufficient cash flows to meet its debt obligations. Monitoring the trend of the financial leverage ratio is crucial to assess the company's solvency and financial stability over time.
Peer comparison
Dec 31, 2023