SunCoke Energy Inc (SXC)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,660,400 | 1,654,600 | 1,615,400 | 1,613,400 | 1,753,800 |
| Total stockholders’ equity | US$ in thousands | 614,200 | 585,600 | 498,100 | 469,000 | 491,600 |
| Financial leverage ratio | 2.70 | 2.83 | 3.24 | 3.44 | 3.57 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,660,400K ÷ $614,200K
= 2.70
The financial leverage ratio measures the extent to which a company relies on debt to finance its operations and growth. SunCoke Energy Inc's financial leverage ratio has shown a decreasing trend over the past five years, declining from 3.57 in 2019 to 2.70 in 2023.
A lower financial leverage ratio indicates that the company is relying less on debt financing and is therefore considered less risky in terms of potential default on debt obligations. It also suggests that the company may have a stronger financial position and greater ability to weather economic downturns or financial instability.
SunCoke Energy Inc's decreasing financial leverage ratio may signify that the company has been reducing its debt levels relative to its equity over the years. This could be a positive sign as it indicates improved financial health and reduced financial risk. However, it is essential to consider the specific circumstances and strategies of the company when interpreting this trend in the financial leverage ratio.
Peer comparison
Dec 31, 2023