Green Plains Renewable Energy Inc (GPRE)

Debt-to-capital 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 stockholders’ equity US$ in thousands 865,215 843,733 910,031 950,500 646,852
Debt-to-capital ratio 0.33 0.37 0.35 0.35 0.31

December 31, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $432,460K ÷ ($432,460K + $865,215K)
= 0.33

The debt-to-capital ratio of Green Plains Renewable Energy Inc has shown a slight upward trend over the past five years. Starting at 0.31 as of December 31, 2020, the ratio increased to 0.35 by the end of 2021 and maintained this level for the subsequent two years. However, by December 31, 2023, the ratio rose to 0.37 before slightly decreasing to 0.33 as of December 31, 2024.

This indicates that the company's reliance on debt financing relative to its total capital has been gradually increasing, with a peak in 2023. While the decrease in 2024 can be seen as a positive sign, the overall trend suggests a need for careful monitoring of the company's debt levels to ensure sustainable financial health.