Vital Energy Inc. (VTLE)

Financial leverage ratio

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Total assets	US$ in thousands	5,878,950	6,251,010	5,263,210	5,661,900	5,149,580	4,426,250	3,815,430	2,943,240	2,726,110	2,805,920	2,873,010	2,726,330	2,551,820	2,258,970	1,786,810	1,474,900	1,442,610	1,581,320	1,870,590	531,190
Total stockholders’ equity	US$ in thousands	2,700,570	3,055,840	2,835,900	2,798,800	2,785,260	1,773,060	1,603,570	1,225,370	1,110,750	1,000,670	679,456	423,788	513,780	224,062	-154,282	-68,568	-21,443	141,512	376,020	919,221
Financial leverage ratio		2.18	2.05	1.86	2.02	1.85	2.50	2.38	2.40	2.45	2.80	4.23	6.43	4.97	10.08	—	—	—	11.17	4.97	0.58

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. has shown fluctuations over the years, indicating the company's use of debt to finance its operations. Starting at a relatively low level of 0.58 on March 31, 2020, the ratio increased significantly to 11.17 on September 30, 2020, suggesting a substantial reliance on debt during that period.

Thereafter, the financial leverage ratio dropped to an unreported level on December 31, 2020, and remained unreported for the following two quarters. This lack of data could indicate potential challenges in obtaining accurate financial information during that period.

Subsequently, the ratio resumed at 10.08 on September 30, 2021, before fluctuating downwards to 1.85 by December 31, 2023. This decline in leverage may signify a reduction in debt usage or an increase in equity financing during this timeframe.

From March 31, 2024, the financial leverage ratio showed a slight increase to 2.02, indicating a moderate rise in reliance on debt to support the company's assets and operations. The ratio remained relatively stable around this level in the subsequent quarters, ranging between 1.86 and 2.18.

Overall, the financial leverage ratio of Vital Energy Inc. has exhibited variability over the years, reflecting changes in the company's capital structure and financial decision-making. It is essential for the company to carefully manage its debt levels to maintain a healthy balance between debt and equity financing.