New Era Helium Warrants(Nehcw) Financials: Debt To Equity Compared To Industry Average, Plus Other Key Ratios
Solvency Trend (Last 5 Years)
Solvency - debt to equity
This chart shows the historical trend of debt to equity for NEHCW compared to its industry average over the recent years.
Ratio Definition and Interpretation
Name: Debt to Equity
Definition: Debt to equity shows how much debt the company uses compared to the amount invested by its owners. It’s a bit like comparing your mortgage to your house down payment. Higher ratios suggest the business is comfortable borrowing to grow — which can boost returns in good times, but adds risk if conditions worsen. Lower ratios signal a more conservative, steady approach.
Interpretation:
• In '2023', NEHCW's debt to equity was 4.80, showing the balance between debt financing and shareholders' equity. Industry average for Oil & Gas Production in '2023' stood at 0.81.
• In '2024', NEHCW's debt to equity was -2.17, showing the balance between debt financing and shareholders' equity. The decrease since '2023' reflects improving financial health. Industry average for Oil & Gas Production in '2024' stood at 0.44. Industry average declined by 0.36 from previous year.
Overall, NEHCW's debt to equity has been volatile but showed a downward trend over the past 2 years.
Formula: Debt to Equity = Total Debt / Shareholders' Equity
Good Range: Below 1.0 is conservative; 1-2 is common depending on industry.