Dorian LPG Ltd (LPG)
Financial leverage ratio
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,837,650 | 1,708,910 | 1,607,360 | 1,581,620 | 1,671,960 |
| Total stockholders’ equity | US$ in thousands | 1,023,530 | 873,846 | 920,151 | 946,825 | 977,052 |
| Financial leverage ratio | 1.80 | 1.96 | 1.75 | 1.67 | 1.71 |
March 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,837,650K ÷ $1,023,530K
= 1.80
The financial leverage ratio of Dorian LPG Ltd has fluctuated over the past five years, ranging from 1.67 in March 2021 to 1.96 in March 2023. The ratio measures the company's debt levels in relation to its equity, with a higher ratio indicating higher financial leverage and reliance on debt financing.
A decreasing trend in the financial leverage ratio from 2023 to 2021 suggests that the company may have been reducing its reliance on debt to finance its operations, which can be viewed positively as it indicates a lower risk of financial distress. However, the ratio increased in 2023, indicating a potential shift back towards higher debt levels.
Overall, while the financial leverage ratio of Dorian LPG Ltd has shown some volatility, further examination of the company's debt structure and overall financial position would be necessary to understand the implications of these fluctuations and assess the company's risk profile accurately.