Vital Energy Inc. (VTLE)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 5,149,580 | 2,726,110 | 2,551,820 | 1,442,610 | 2,264,440 |
| Total stockholders’ equity | US$ in thousands | 2,785,260 | 1,110,750 | 513,780 | -21,443 | 841,874 |
| Financial leverage ratio | 1.85 | 2.45 | 4.97 | — | 2.69 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $5,149,580K ÷ $2,785,260K
= 1.85
The financial leverage ratio reflects Vital Energy Inc.'s level of debt relative to its equity over the past five years. In 2023, the financial leverage ratio decreased to 1.85 from 2.45 in 2022, indicating a reduction in the company's dependency on debt to finance its operations. This could imply improved financial stability and lower financial risk.
Comparing to 2021 where the financial leverage ratio was significantly higher at 4.97, the company has made significant progress in reducing its debt burden. However, it is worth noting the absence of data for 2020, which makes it challenging to assess the company's leveraging strategy for that year.
In 2019, the financial leverage ratio stood at 2.69, showcasing a moderate level of leverage, which appears to have been managed more effectively in the subsequent years. Overall, the trend suggests that Vital Energy Inc. has been successful in lowering its reliance on debt financing, potentially enhancing its financial flexibility and resilience.
Peer comparison
Dec 31, 2023