Vital Energy Inc. (VTLE)

Financial leverage ratio

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Total assets	US$ in thousands	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	2,264,440	2,277,650	2,619,920	2,514,790
Total stockholders’ equity	US$ in thousands	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	841,874	1,079,250	1,344,320	1,171,430
Financial leverage ratio		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	2.69	2.11	1.95	2.15

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $5,149,580K ÷ $2,785,260K
= 1.85

The financial leverage ratio of Vital Energy Inc. has shown fluctuations over the past few quarters. In the most recent quarter, as of December 31, 2023, the financial leverage ratio stood at 1.85, indicating that the company's debt levels were moderate relative to its equity.

However, it is essential to note the significant variations in the financial leverage ratio in previous quarters. The ratio increased steadily from March 31, 2020, to March 31, 2021, reaching a peak of 11.17, suggesting a high level of debt compared to equity during this period. Subsequently, there was a sharp decline in the ratio in the following quarter, June 30, 2021, indicating a significant reduction in debt relative to equity.

The trend continued with fluctuations in the financial leverage ratio, demonstrating varying levels of leverage within the company's capital structure. The highest value recorded at 11.17 could raise concerns about the company's financial risk and ability to meet its debt obligations, while the lower values observed in other periods suggest a more conservative approach to debt financing.

Overall, the financial leverage ratio analysis indicates that Vital Energy Inc. has experienced fluctuations in its leverage levels, underscoring the importance of closely monitoring debt levels and their impact on the company's financial health and risk profile.