Vital Energy Inc. (VTLE)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 5,878,950 | 5,149,580 | 2,726,110 | 2,551,820 | 1,442,610 |
| Total stockholders’ equity | US$ in thousands | 2,700,570 | 2,785,260 | 1,110,750 | 513,780 | -21,443 |
| Financial leverage ratio | 2.18 | 1.85 | 2.45 | 4.97 | — |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $5,878,950K ÷ $2,700,570K
= 2.18
The financial leverage ratio of Vital Energy Inc. provides insights into the company's debt levels relative to its equity over the years.
- As of December 31, 2020, the ratio was not available, indicating a lack of debt or equity information for that period.
- By December 31, 2021, the ratio stood at 4.97, suggesting high financial leverage with a significant reliance on debt to finance its operations.
- In the following years, there was a notable decrease in the ratio, reaching 2.45 by December 31, 2022, 1.85 by December 31, 2023, and slightly increasing to 2.18 by December 31, 2024. These reductions signify a more balanced mix of debt and equity in the company's capital structure, indicating a lower dependency on borrowing.
Overall, Vital Energy Inc. has managed to decrease its financial leverage ratio over the years, moving towards a healthier capital structure with less reliance on debt financing. It is essential for the company to maintain a balanced approach to debt and equity to ensure sustainable and stable financial performance in the long term.
Peer comparison
Dec 31, 2024