Warrior Met Coal Inc (HCC)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,591,520 | 2,357,060 | 2,028,100 | 1,464,210 | 1,393,940 |
| Total stockholders’ equity | US$ in thousands | 2,090,820 | 1,874,450 | 1,447,520 | 871,983 | 725,241 |
| Financial leverage ratio | 1.24 | 1.26 | 1.40 | 1.68 | 1.92 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,591,520K ÷ $2,090,820K
= 1.24
Warrior Met Coal Inc's financial leverage ratio has exhibited a declining trend over the past five years, from 1.92 on December 31, 2020, to 1.24 on December 31, 2024. This indicates that the company's reliance on debt to finance its assets has been decreasing. A decreasing trend in the financial leverage ratio can suggest improved financial stability and reduced risk of insolvency, as the company is relying less on borrowed funds. However, it is essential to consider the reasons behind this trend and assess the overall capital structure and financing strategy of the company to fully understand the implications of the changing leverage ratio.
Peer comparison
Dec 31, 2024