Warrior Met Coal Inc (HCC)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 1,874,450 | 1,447,520 | 871,983 | 725,241 | 765,582 |
| Debt-to-capital ratio | 0.08 | 0.17 | 0.28 | 0.34 | 0.31 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $153,023K ÷ ($153,023K + $1,874,450K)
= 0.08
The debt-to-capital ratio of Warrior Met Coal Inc has exhibited a downward trend over the past five years, indicating a strengthening financial position in terms of leverage. The ratio decreased from 0.33 in 2019 to 0.08 in 2023. This suggests that the company has been reducing its reliance on debt financing in comparison to its total capital structure. A lower debt-to-capital ratio typically signifies lower financial risk and better debt management. Warrior Met Coal Inc's declining debt-to-capital ratio may be indicative of improved operational efficiency and effective debt repayment strategies. Overall, the decreasing trend in the debt-to-capital ratio reflects positively on the company's financial health and stability.
Peer comparison
Dec 31, 2023