Warrior Met Coal Inc (HCC)
Financial leverage ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,357,060 | 2,219,250 | 2,244,080 | 2,150,990 | 2,028,100 | 1,935,280 | 1,898,920 | 1,643,350 | 1,464,210 | 1,344,610 | 1,347,080 | 1,379,990 | 1,393,940 | 1,391,010 | 1,397,190 | 1,439,170 | 1,344,260 | 1,349,580 | 1,290,480 | 1,400,000 |
| Total stockholders’ equity | US$ in thousands | 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 | 765,582 | 745,937 | 712,658 | 819,064 |
| Financial leverage ratio | 1.26 | 1.27 | 1.35 | 1.36 | 1.40 | 1.44 | 1.47 | 1.61 | 1.68 | 1.83 | 1.93 | 1.97 | 1.92 | 1.83 | 1.80 | 1.83 | 1.76 | 1.81 | 1.81 | 1.71 |
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 been fluctuating over the past eight quarters, ranging from 1.26 to 1.61. The financial leverage ratio measures the extent to which a company is utilizing debt to finance its operations compared to its equity. A higher financial leverage ratio indicates higher financial risk as the company is relying more on debt financing.
The downward trend in Warrior Met Coal Inc's financial leverage ratio from Q1 2022 to Q4 2023 suggests a decreasing reliance on debt to support its business activities. This could be seen as a positive sign, as lower leverage ratios generally indicate a more conservative financial structure and reduced risk of financial distress.
However, the ratio is still above 1, indicating that Warrior Met Coal Inc has more debt than equity in its capital structure. This implies that the company is still relatively leveraged and may face higher interest expenses and repayment obligations compared to companies with lower financial leverage ratios.
Overall, while Warrior Met Coal Inc has shown a decreasing trend in its financial leverage ratio, investors and analysts should continue to monitor the company's debt levels and capital structure to assess its ability to meet financial obligations and sustain long-term growth.
Peer comparison
Dec 31, 2023