Dorian LPG Ltd (LPG)
Financial leverage ratio
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,778,660 | 1,820,060 | 1,861,240 | 1,911,790 | 1,837,650 | 1,820,340 | 1,784,020 | 1,523,450 | 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 |
| Total stockholders’ equity | US$ in thousands | 1,046,110 | 1,068,510 | 1,088,250 | 1,119,860 | 1,023,530 | 984,058 | 923,309 | 844,349 | 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 |
| Financial leverage ratio | 1.70 | 1.70 | 1.71 | 1.71 | 1.80 | 1.85 | 1.93 | 1.80 | 1.96 | 1.83 | 1.80 | 1.80 | 1.75 | 1.65 | 1.67 | 1.67 | 1.67 | 1.64 | 1.69 | 1.71 |
March 31, 2025 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,778,660K ÷ $1,046,110K
= 1.70
The financial leverage ratio of Dorian LPG Ltd has shown some fluctuations over the years, ranging from 1.64 to 1.96. The financial leverage ratio measures the proportion of a company's debt in its capital structure. A higher financial leverage ratio indicates that the company relies more on debt financing, which can amplify returns in good times but also increase risks in challenging economic environments.
In the case of Dorian LPG Ltd, the trend of the financial leverage ratio has been somewhat volatile, with the ratio decreasing from 1.71 in June 2020 to 1.64 in December 2020, before gradually increasing to 1.96 in March 2023. Thereafter, the ratio declined to 1.70 in March 2025.
The increase in the financial leverage ratio could be attributed to an increase in the company's debt levels relative to its equity, which could be due to various factors such as strategic acquisitions, capital expenditure, or refinancing of existing debt. It is essential for investors and stakeholders to closely monitor this ratio as high levels of leverage can potentially strain the company's financial position and make it vulnerable to economic downturns or interest rate fluctuations.