Newmont Goldcorp Corp (NEM)
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 | 55,506,000 | 38,084,000 | 38,133,000 | 38,374,000 | 38,482,000 | 39,143,000 | 39,690,000 | 39,913,000 | 40,564,000 | 39,865,000 | 40,677,000 | 41,063,000 | 41,369,000 | 40,551,000 | 39,885,000 | 39,699,000 | 39,974,000 | 40,763,000 | 36,987,000 | 20,880,000 |
| Total stockholders’ equity | US$ in thousands | 29,027,000 | 19,074,000 | 19,225,000 | 19,377,000 | 19,354,000 | 21,219,000 | 21,421,000 | 21,449,000 | 22,022,000 | 22,712,000 | 23,239,000 | 23,127,000 | 23,008,000 | 22,661,000 | 22,004,000 | 21,806,000 | 21,420,000 | 21,430,000 | 19,354,000 | 10,499,000 |
| Financial leverage ratio | 1.91 | 2.00 | 1.98 | 1.98 | 1.99 | 1.84 | 1.85 | 1.86 | 1.84 | 1.76 | 1.75 | 1.78 | 1.80 | 1.79 | 1.81 | 1.82 | 1.87 | 1.90 | 1.91 | 1.99 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $55,506,000K ÷ $29,027,000K
= 1.91
Newmont Corp's financial leverage ratio has been relatively stable over the past eight quarters, ranging from 1.84 to 2.00. The ratio indicates the company's degree of financial leverage and its reliance on debt financing. A financial leverage ratio above 1 suggests that the company has more debt than equity in its capital structure.
In Newmont Corp's case, the ratio has been consistently above 1, indicating a higher proportion of debt compared to equity in its capital structure. This suggests that the company may be more leveraged and potentially more risky due to its higher debt levels. However, it's important to note that a higher leverage ratio can also magnify profitability during periods of growth, but can also increase financial risk during economic downturns.
Overall, Newmont Corp's financial leverage ratio hovering around the 1.90 range indicates a moderate level of financial leverage, which investors and analysts should continue to monitor to assess the company's ability to manage its debt obligations effectively.