Chart Industries Inc (GTLS)
Financial leverage ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 9,123,900 | 9,498,400 | 9,277,500 | 9,247,900 | 9,102,400 | 9,020,200 | 9,407,500 | 9,297,400 | 5,901,900 | 3,069,200 | 3,167,600 | 3,085,900 | 3,043,800 | 2,981,800 | 2,830,000 | 2,652,300 | 2,586,500 | 2,452,900 | 2,452,600 | 2,423,000 |
| Total stockholders’ equity | US$ in thousands | 2,828,800 | 2,971,200 | 2,749,100 | 2,738,500 | 2,786,500 | 2,757,500 | 2,807,200 | 2,706,900 | 2,684,300 | 1,617,400 | 1,605,400 | 1,620,700 | 1,625,200 | 1,582,400 | 1,576,400 | 1,559,000 | 1,591,300 | 1,292,100 | 1,246,400 | 1,210,100 |
| Financial leverage ratio | 3.23 | 3.20 | 3.37 | 3.38 | 3.27 | 3.27 | 3.35 | 3.43 | 2.20 | 1.90 | 1.97 | 1.90 | 1.87 | 1.88 | 1.80 | 1.70 | 1.63 | 1.90 | 1.97 | 2.00 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $9,123,900K ÷ $2,828,800K
= 3.23
The financial leverage ratio of Chart Industries Inc has been fluctuating over the periods presented. From March 31, 2020, to June 30, 2022, the ratio ranged between 1.63 and 2.00, indicating a relatively stable leverage position. However, from March 31, 2023, the ratio started to increase significantly, reaching a peak of 3.43 on March 31, 2023, before slightly decreasing to 3.23 on December 31, 2024.
This significant increase in the financial leverage ratio from 2023 onwards suggests that the company may be relying more on debt to finance its operations and investments. A higher leverage ratio indicates a higher level of financial risk, as the company may have increased interest payments and debt obligations to meet in the future.
Investors and stakeholders should closely monitor the trend in the financial leverage ratio to assess the potential impact on the company's financial health and risk profile. It would be advisable for the company to manage its debt levels carefully and ensure that it can effectively service its debt obligations to maintain a healthy financial position.