Green Plains Renewable Energy Inc (GPRE)

Debt-to-assets ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	491,918	495,243	514,006	287,299	243,990
Total assets	US$ in thousands	1,939,320	2,123,130	2,159,760	1,578,920	1,698,220
Debt-to-assets ratio		0.25	0.23	0.24	0.18	0.14

December 31, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $491,918K ÷ $1,939,320K
= 0.25

The debt-to-assets ratio of Green Plains Inc has been relatively stable over the past five years, ranging from 0.30 to 0.33. This ratio indicates that, on average, the company finances around 30% to 33% of its assets through debt, with the remainder being covered by equity.

A ratio below 1 suggests that the company has more assets than debt, which can be seen as a positive indication of financial health and lower risk. Green Plains Inc's consistent ratio around 0.30 to 0.33 implies that the company maintains a conservative approach to debt financing, which can provide stability and reduce financial risk, especially in times of economic uncertainty.

Overall, the trend of Green Plains Inc's debt-to-assets ratio over the past five years suggests that the company has managed its debt levels effectively while maintaining a healthy balance between debt and equity in its capital structure.