Dorian LPG Ltd (LPG)
Financial leverage ratio
| Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,837,650 | 1,820,340 | 1,784,020 | 1,703,680 | 1,708,910 | 1,530,410 | 1,488,460 | 1,523,450 | 1,607,360 | 1,528,240 | 1,511,600 | 1,564,590 | 1,581,620 | 1,665,040 | 1,674,100 | 1,696,940 | 1,671,960 | 1,657,830 | 1,642,210 | 1,619,110 |
| Total stockholders’ equity | US$ in thousands | 1,023,530 | 984,058 | 923,309 | 885,609 | 873,846 | 837,327 | 825,369 | 844,349 | 920,151 | 924,191 | 906,949 | 938,548 | 946,825 | 1,015,770 | 989,591 | 989,953 | 977,052 | 982,025 | 954,372 | 919,080 |
| Financial leverage ratio | 1.80 | 1.85 | 1.93 | 1.92 | 1.96 | 1.83 | 1.80 | 1.80 | 1.75 | 1.65 | 1.67 | 1.67 | 1.67 | 1.64 | 1.69 | 1.71 | 1.71 | 1.69 | 1.72 | 1.76 |
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 shown some fluctuations over the period in question. The ratio ranges from a low of 1.64 in December 2020 to a high of 1.96 in March 2023. The trend indicates a moderate level of financial leverage, with the ratio hovering around an average of approximately 1.75 to 1.85 during this period.
A financial leverage ratio above 1 indicates that the company relies more on debt financing than equity financing. The fluctuations in the ratio suggest varying levels of debt utilization by the company to fund its operations and investments. It is important to note that a higher financial leverage ratio implies higher financial risk due to increased debt obligations, while a lower ratio may indicate a more conservative capital structure.
Overall, a careful assessment of Dorian LPG Ltd's financial leverage ratio trend can provide insights into the company's capital structure decisions and risk management strategies.