Warrior Met Coal Inc (HCC)
Debt-to-capital 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 153,612 | 153,460 | 153,312 | 153,166 | 153,023 | 152,883 | 295,311 | 295,051 | 302,588 | 303,916 | 340,356 | 340,078 | 339,806 | 340,491 | 380,292 | 380,098 | 379,908 | 379,722 | 379,541 | 409,363 |
| Total stockholders’ equity | US$ in thousands | 2,090,820 | 2,086,830 | 2,048,390 | 1,978,200 | 1,874,450 | 1,745,210 | 1,661,300 | 1,578,290 | 1,447,520 | 1,347,630 | 1,291,060 | 1,018,610 | 871,983 | 735,363 | 698,154 | 700,303 | 725,241 | 759,711 | 774,963 | 785,122 |
| Debt-to-capital ratio | 0.07 | 0.07 | 0.07 | 0.07 | 0.08 | 0.08 | 0.15 | 0.16 | 0.17 | 0.18 | 0.21 | 0.25 | 0.28 | 0.32 | 0.35 | 0.35 | 0.34 | 0.33 | 0.33 | 0.34 |
December 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $153,612K ÷ ($153,612K + $2,090,820K)
= 0.07
Warrior Met Coal Inc's debt-to-capital ratio has shown a declining trend over the past few years, indicating a favorable financial position. The ratio decreased steadily from 0.34 as of March 31, 2020, to 0.07 as of December 31, 2024. This demonstrates the company's ability to reduce its debt relative to its total capital over time.
A decreasing debt-to-capital ratio suggests that Warrior Met Coal Inc has been effectively managing its debt levels in relation to its overall capital structure. Lower debt levels can improve the company's financial flexibility, reduce interest expenses, and enhance its creditworthiness.
The declining trend in the debt-to-capital ratio reflects positively on Warrior Met Coal Inc's financial health and may indicate prudent financial management by the company's management. It suggests a decreasing reliance on debt financing and a strengthening capital position, which could support future growth opportunities and mitigate financial risks.
Peer comparison
Dec 31, 2024