Warrior Met Coal Inc (HCC)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,357,060 | 2,028,100 | 1,464,210 | 1,393,940 | 1,344,260 |
| Total stockholders’ equity | US$ in thousands | 1,874,450 | 1,447,520 | 871,983 | 725,241 | 765,582 |
| Financial leverage ratio | 1.26 | 1.40 | 1.68 | 1.92 | 1.76 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,357,060K ÷ $1,874,450K
= 1.26
Warrior Met Coal Inc's financial leverage ratio has exhibited a declining trend over the past five years, decreasing from 1.76 in 2019 to 1.26 in 2023. This indicates that the company has been progressively reducing its reliance on debt to finance its operations and investments. A lower financial leverage ratio suggests a lower level of financial risk for the company, as it indicates a smaller proportion of debt in its capital structure compared to equity. Warrior Met Coal Inc's decreasing trend in financial leverage ratio may be a result of a strategic shift towards more conservative financial management practices or improved financial performance leading to better debt repayment capabilities. Overall, the declining financial leverage ratio implies a strengthening financial position for Warrior Met Coal Inc.
Peer comparison
Dec 31, 2023