Permian Resources Corporation (PR)

Financial leverage ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Total assets	US$ in thousands	16,897,900	14,965,600	8,492,590	3,804,590	3,827,420
Total stockholders’ equity	US$ in thousands	9,138,530	6,336,100	2,935,750	2,750,720	2,603,960
Financial leverage ratio		1.85	2.36	2.89	1.38	1.47

December 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $16,897,900K ÷ $9,138,530K
= 1.85

The financial leverage ratio of Permian Resources Corporation has shown fluctuations over the past five years. In 2020, the ratio was 1.47, indicating that the company had $1.47 of debt for every $1 of equity. By the end of 2021, the ratio decreased slightly to 1.38, suggesting a slight improvement in the company's financial leverage.

However, in 2022, there was a significant increase in the financial leverage ratio to 2.89, indicating a higher level of debt compared to equity. This spike in the ratio could potentially raise concerns about the company's ability to meet its debt obligations. In 2023, the ratio decreased to 2.36, which indicates a slight improvement in the company's leverage position compared to the previous year.

By the end of 2024, the financial leverage ratio decreased further to 1.85, which suggests that the company had reduced its debt relative to equity. Overall, the trend in Permian Resources Corporation's financial leverage ratio shows some fluctuations, with the company experiencing a period of higher leverage in 2022 followed by improvements in subsequent years. Monitoring this ratio is crucial for assessing the company's financial risk and stability over time.