Green Plains Renewable Energy Inc (GPRE)
Debt-to-assets ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 432,460 | 491,918 | 495,243 | 514,006 | 287,299 |
| Total assets | US$ in thousands | 1,782,170 | 1,939,320 | 2,123,130 | 2,159,760 | 1,578,920 |
| Debt-to-assets ratio | 0.24 | 0.25 | 0.23 | 0.24 | 0.18 |
December 31, 2024 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $432,460K ÷ $1,782,170K
= 0.24
The debt-to-assets ratio of Green Plains Renewable Energy Inc has shown a slight increase over the past five years, from 0.18 at the end of December 31, 2020, to 0.24 at the end of December 31, 2024. This indicates that the company's level of debt relative to its total assets has been gradually rising.
A debt-to-assets ratio of 0.24 as of December 31, 2024, implies that 24% of the company's assets are financed by debt. While this ratio alone doesn't provide a complete picture of the company's financial health, it suggests that Green Plains Renewable Energy Inc has been utilizing debt financing to a moderate extent to support its operations and expansion activities.
It is advisable to compare this ratio with industry benchmarks and the company's historical performance to assess whether the current debt level is sustainable and in line with industry norms. Overall, the upward trend in the debt-to-assets ratio warrants further analysis and monitoring to ensure that the company's financial leverage remains at a manageable level.
Peer comparison
Dec 31, 2024