Green Plains Renewable Energy Inc (GPRE)

Financial leverage ratio

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Total assets	US$ in thousands	1,939,320	1,951,140	2,022,800	2,034,830	2,123,130	2,101,540	2,296,010	2,252,500	2,159,760	2,113,200	1,992,950	1,944,630	1,578,920	1,537,420	1,571,080	1,638,100	1,698,220	1,692,070	2,140,730	2,147,580
Total stockholders’ equity	US$ in thousands	843,733	828,149	777,948	822,988	910,031	962,042	931,173	890,525	950,500	971,429	864,071	787,568	646,852	685,626	741,779	766,020	751,905	792,954	879,129	908,117
Financial leverage ratio		2.30	2.36	2.60	2.47	2.33	2.18	2.47	2.53	2.27	2.18	2.31	2.47	2.44	2.24	2.12	2.14	2.26	2.13	2.44	2.36

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 been fluctuating over the past eight quarters, ranging from 2.18 to 2.60. The ratio measures the extent to which the company relies on debt to finance its operations and investments. A higher ratio indicates a higher level of debt relative to equity in the company's capital structure.

Observing the trend in the financial leverage ratio, we can see that there was an upward trend from Q4 2022 to Q3 2023, reaching a peak of 2.60 in Q2 2023. This suggests that Green Plains Inc increased its reliance on debt during this period. However, in Q3 and Q4 2023, the ratio slightly decreased, indicating a possible attempt to reduce debt levels or increase equity in the capital structure.

Overall, the financial leverage ratio of Green Plains Inc has shown some volatility, which may indicate varying degrees of financial risk and leverage in the company's operations. Further analysis of the company's debt management strategies and future financial decisions would provide more insight into its financial stability and performance.