Granite Ridge Resources(Grnt) Financials: Equity Multiplier Compared To Industry Average, Plus Other Key Ratios
Solvency Trend (Last 5 Years)
Solvency - equity multiplier
This chart shows the historical trend of equity multiplier for GRNT compared to its industry average over the recent years.
Ratio Definition and Interpretation
Name: Equity Multiplier
Definition: The equity multiplier shows how much total assets the company controls for every dollar invested by shareholders. It reflects how much debt is being used to stretch owners’ equity. A higher multiplier means greater use of debt to amplify returns — but also amplifies risk if things go wrong. Lower multipliers suggest a safer, more self-funded business.
Interpretation:
• In '2022', GRNT's equity multiplier was 1.20, representing the level of financial leverage utilized. Industry average for Oil & Gas Production in '2022' stood at 2.32.
• In '2023', GRNT's equity multiplier was 1.38, representing the level of financial leverage utilized. The increase compared to '2022' may signal growing financial pressure. Industry average for Oil & Gas Production in '2023' stood at 1.96. Industry average declined by 0.36 from previous year.
• In '2024', GRNT's equity multiplier was 1.63, representing the level of financial leverage utilized. The increase compared to '2023' may signal growing financial pressure. Industry average for Oil & Gas Production in '2024' stood at 1.86. Industry average declined by 0.10 from previous year.
Overall, GRNT's equity multiplier has been volatile but showed an upward trend over the past 3 years.
Formula: Equity Multiplier = Total Assets / Shareholders' Equity
Good Range: Usually ranges from 1.5 to 3 depending on industry.