Southwestern Energy Company (SWN)
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 | 11,991,000 | 12,973,000 | 13,001,000 | 12,937,000 | 12,926,000 | 13,104,000 | 12,932,000 | 11,847,000 | 11,848,000 | 9,241,000 | 5,394,000 | 5,247,000 | 5,160,000 | 4,157,000 | 4,555,000 | 5,275,000 | 6,717,000 | 6,598,000 | 6,545,000 | 6,446,000 |
| Total stockholders’ equity | US$ in thousands | 5,888,000 | 6,537,000 | 6,489,000 | 6,254,000 | 4,324,000 | 1,414,000 | 1,043,000 | -119,000 | 2,547,000 | -286,000 | -18,000 | 586,000 | 497,000 | 384,000 | 823,000 | 1,701,000 | 3,246,000 | 3,135,000 | 3,082,000 | 2,937,000 |
| Financial leverage ratio | 2.04 | 1.98 | 2.00 | 2.07 | 2.99 | 9.27 | 12.40 | — | 4.65 | — | — | 8.95 | 10.38 | 10.83 | 5.53 | 3.10 | 2.07 | 2.10 | 2.12 | 2.19 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $11,991,000K ÷ $5,888,000K
= 2.04
The financial leverage ratio of Southwestern Energy Company has been fluctuating over the past few quarters. From Q1 2022 to Q2 2022, the ratio increased significantly from 2.07 to 12.40, indicating a significant increase in the company's financial leverage during that period. However, in subsequent quarters, the ratio decreased gradually, reaching 2.04 in Q4 2023.
A financial leverage ratio above 1 indicates that the company is relying more on debt to finance its operations than on equity. A higher ratio suggests higher financial risk due to increased debt obligations. Southwestern Energy Company's ratio peaked at 12.40 in Q2 2022, signifying a substantial reliance on debt at that time.
The decrease in the financial leverage ratio since Q2 2022 could imply that the company has taken steps to reduce its debt levels or has improved its profitability and equity position. However, the ratio fluctuated between 1.98 and 2.07 in the past few quarters, indicating some volatility in the company's capital structure.
Overall, continued monitoring of Southwestern Energy Company's financial leverage ratio will be essential to assess its long-term financial health and risk management strategies.
Peer comparison
Dec 31, 2023