Liberty Oilfield Services Inc (LBRT)

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	3,033,560	3,089,120	2,924,500	2,760,620	2,575,930	2,525,160	2,335,130	2,190,880	2,040,660	1,966,090	1,975,130	1,916,780	1,889,940	1,058,750	1,051,120	1,298,550	1,283,430	1,295,230	1,303,380	1,268,860
Total stockholders’ equity	US$ in thousands	1,841,410	1,788,560	1,673,940	1,590,120	1,495,020	1,404,740	1,327,570	1,231,260	1,213,240	1,179,700	1,216,810	1,204,550	1,150,640	507,602	531,831	555,371	554,827	529,076	471,547	449,967
Financial leverage ratio		1.65	1.73	1.75	1.74	1.72	1.80	1.76	1.78	1.68	1.67	1.62	1.59	1.64	2.09	1.98	2.34	2.31	2.45	2.76	2.82

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,033,560K ÷ $1,841,410K
= 1.65

Based on the financial leverage ratio data for Liberty Energy Inc over the past eight quarters, we observe fluctuations in the company's leverage position. The financial leverage ratio measures the proportion of a company's total debt to its total assets and is an indicator of the firm's financial risk and solvency.

The trend in Liberty Energy Inc's financial leverage ratio shows some volatility, ranging from 1.65 to 1.80 over the past two years. The ratio peaked at 1.80 in Q3 2022 and hit its lowest point at 1.65 in Q4 2023. Generally, a higher financial leverage ratio indicates a higher level of debt relative to assets, suggesting increased financial risk and potential for financial distress.

The company's ratio has experienced some fluctuations but has generally remained within a relatively narrow range, indicating a relatively stable financial leverage position. It is essential for Liberty Energy Inc to carefully manage its debt levels to ensure financial stability and sustainability in the long term, considering the potential impact on profitability and growth opportunities. Further analysis of the company's debt structure and repayment capabilities would provide a more comprehensive understanding of its financial leverage position.