Warrior Met Coal Inc (HCC)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 153,023 | 302,588 | 339,806 | 379,908 | 339,189 |
| Total assets | US$ in thousands | 2,357,060 | 2,028,100 | 1,464,210 | 1,393,940 | 1,344,260 |
| Debt-to-assets ratio | 0.06 | 0.15 | 0.23 | 0.27 | 0.25 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $153,023K ÷ $2,357,060K
= 0.06
The debt-to-assets ratio of Warrior Met Coal Inc has shown a decreasing trend over the past five years, indicating improved financial health in terms of debt management. The ratio decreased from 0.28 in 2019 to 0.07 in 2023. This suggests that the company has reduced its reliance on debt financing relative to its total assets.
A lower debt-to-assets ratio indicates that Warrior Met Coal Inc has a lower proportion of debt compared to its total assets, which can be perceived as a positive signal to investors and creditors. It implies that the company may have a stronger financial position and may be better able to fulfill its financial obligations.
The declining trend in the debt-to-assets ratio may indicate that Warrior Met Coal Inc has been successful in paying down its debt, improving its leverage position, and potentially lowering its financial risk. It also suggests that the company may have increased asset base or efficiently managed its debt levels over the years.
Overall, the decreasing trend in Warrior Met Coal Inc's debt-to-assets ratio demonstrates a positive financial trajectory and improved debt management practices, which could enhance the company's overall financial stability and resilience.
Peer comparison
Dec 31, 2023