Chart Industries Inc (GTLS)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 9,102,400 | 5,901,900 | 3,043,800 | 2,570,500 | 2,481,400 |
| Total stockholders’ equity | US$ in thousands | 2,786,500 | 2,675,500 | 1,616,600 | 1,572,700 | 1,227,600 |
| Financial leverage ratio | 3.27 | 2.21 | 1.88 | 1.63 | 2.02 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $9,102,400K ÷ $2,786,500K
= 3.27
The financial leverage ratio of Chart Industries Inc has exhibited fluctuations over the past five years. The ratio has increased from 2.02 in 2019 to 3.27 in 2023, indicating a higher level of financial leverage in the most recent year. This suggests that the company has been relying more on debt to finance its operations and investments.
The significant increase in the financial leverage ratio from 2019 to 2023 may signal a change in the company's capital structure, potentially resulting in higher financial risk due to increased debt obligations. It is essential for investors and stakeholders to closely monitor Chart Industries Inc's leverage levels to ensure the company's ability to meet its debt obligations and sustain its business operations over the long term.