Green Plains Renewable Energy Inc (GPRE)

Financial leverage ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total assets	US$ in thousands	1,939,320	2,123,130	2,159,760	1,578,920	1,698,220
Total stockholders’ equity	US$ in thousands	843,733	910,031	950,500	646,852	751,905
Financial leverage ratio		2.30	2.33	2.27	2.44	2.26

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,939,320K ÷ $843,733K
= 2.30

The financial leverage ratio of Green Plains Inc has fluctuated over the past five years. It stood at 2.30 as of December 31, 2023, down slightly from 2.33 in 2022 but higher than the ratios of 2.27 in 2021 and 2.26 in 2019. Notably, the ratio was higher at 2.44 as of December 31, 2020.

A financial leverage ratio of above 2 indicates that the company relies more on debt financing than equity. This suggests that Green Plains Inc has a moderate level of financial leverage, which means that the company has a significant amount of debt in its capital structure compared to equity. Investors and stakeholders should carefully monitor changes in this ratio as it impacts the company's financial risk and ability to meet its debt obligations in the long term.