Vistra Energy Corp (VST)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 37,770,000 | 32,966,000 | 32,787,000 | 29,683,000 | 25,208,000 |
| Total stockholders’ equity | US$ in thousands | 5,583,000 | 5,307,000 | 4,902,000 | 8,291,000 | 8,371,000 |
| Financial leverage ratio | 6.77 | 6.21 | 6.69 | 3.58 | 3.01 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $37,770,000K ÷ $5,583,000K
= 6.77
The financial leverage ratio of Vistra Energy Corp has shown an increasing trend over the years, starting at 3.01 in 2020 and reaching 6.77 by the end of 2024. This indicates that the company's reliance on debt to finance its operations and investments has been on the rise. The substantial increase in the financial leverage ratio from 2022 to 2024 suggests a significant change in the company's capital structure, with a higher proportion of debt compared to equity. This increase in leverage may pose risks in terms of debt service obligations and financial stability, requiring careful monitoring and management by the company's management and stakeholders.
Peer comparison
Dec 31, 2024