Vistra Energy Corp (VST)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 32,966,000 | 32,787,000 | 29,683,000 | 25,208,000 | 26,616,000 |
| Total stockholders’ equity | US$ in thousands | 5,307,000 | 4,902,000 | 8,291,000 | 8,371,000 | 7,959,000 |
| Financial leverage ratio | 6.21 | 6.69 | 3.58 | 3.01 | 3.34 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $32,966,000K ÷ $5,307,000K
= 6.21
The financial leverage ratio of Vistra Corp has exhibited fluctuations over the past five years. In 2023, the company's financial leverage ratio stood at 6.21, showing a decrease from the previous year where it was 6.69. This decrease indicates a potential improvement in the company's leverage position as it suggests that less of the company's assets are funded by debt in 2023 compared to 2022.
When compared to the financial leverage ratios of the earlier years, Vistra Corp's leverage was higher in 2021, with a ratio of 3.58, and even higher in 2020, with a ratio of 3.01. However, there was a significant increase in leverage in 2022, followed by a slight decrease in 2023.
Moreover, the financial leverage ratio in 2023 of 6.21 is higher than the ratio in 2019, which was 3.34. This indicates that Vistra Corp has increased its reliance on debt financing in 2023 compared to 2019.
Overall, the fluctuation in Vistra Corp's financial leverage ratio over the past five years suggests varying levels of debt utilization by the company to finance its operations and investments. Further analysis of the company's financial statements and debt structure would be beneficial for a deeper understanding of its leverage position and financial health.
Peer comparison
Dec 31, 2023