Ratio Energies LP

Ratio Energies LP maintains a capital structure with a debt-to-equity ratio of 1.41, indicating a moderate reliance on debt financing. The company's liquidity position is characterized by a current ratio of 2.28, suggesting it has sufficient short-term assets to cover its liabilities. However, the risk assessment highlights a medium liquidity risk, with net cash being negative after subtracting total debt, signaling potential short-term financial strain.

In terms of profitability, the company's return on equity (ROE) is 7.37%, and its return on assets (ROA) is 2.62%. These figures are below the industry median for ROE and ROA, indicating that the company is underperforming relative to its peers in terms of capital efficiency and asset utilization.

Geographically and segment-wise, the company's revenue concentration is not disclosed in the available data. However, as an E&P firm, it is likely exposed to regional production hubs and commodity price volatility, which are standard for the sector.

The company's growth trajectory is mixed. While the most recent actual revenue of $1.33 billion exceeds the reported revenue of $72.5 million, this discrepancy may reflect different reporting periods or adjustments in the data. The outlook for the current fiscal year suggests a need for careful monitoring of capital expenditures and operating cash flow to sustain growth.

Risk factors include a medium liquidity risk and a potential for dilution, though the latter is currently assessed as low. The company's capital expenditure of -$11.2 million indicates a reduction in investment, which may affect long-term growth prospects.

Recent events, such as the latest financial filings and transcripts, are not detailed in the available data. However, the company's financial snapshot and risk assessment suggest a need for continued scrutiny of its liquidity and capital structure.

The company generated $98.8 million in free cash flow in 2024, demonstrating strong cash generation capabilities.

Cash conversion ratio of 0.97 exceeds the cohort median of 0.95, indicating efficient earnings translation to cash.

Long-term debt decreased to $520.1 million in 2024, showing a reduction in leverage compared to prior periods.

Revenue declined 5.2% year-over-year to $276.7 million in 2024, signaling contraction in top-line growth.

The debt-to-equity ratio of 1.41 places Ratio Energies in the bottom quartile of its peer cohort.

The company faces high credit risk and medium liquidity risk, posing potential financial stability concerns.

Revenue $72.4M; Operating income $49.6M.

• ▍Revenue $72.4M
• ▍Operating income $49.6M
• ▍Net margin 47.7%

Revenue $85.4M; Operating income $62.7M.

• ▍Revenue $85.4M
• ▍Operating income $62.7M
• ▍Net margin 44.8%

Revenue $80.6M; Operating income $57.6M.

• ▍Revenue $80.6M
• ▍Operating income $57.6M
• ▍Net margin 43.9%

Revenue $72.5M; Operating income $49.5M.

• ▍Revenue $72.5M
• ▍Operating income $49.5M
• ▍Net margin 43.2%

Revenue $276.7M, −11,0% YoY; Operating income −14,3% YoY.

• ▍Revenue $276.7M, −11,0% YoY
• ▍Operating income −14,3% YoY
• ▍Net income −10,2% YoY
• ▍Free cash flow −22,4% YoY
• ▍Net margin 45.3%

Revenue $310.9M, +1,9% YoY; Operating income −0,3% YoY.

• ▍Revenue $310.9M, +1,9% YoY
• ▍Operating income −0,3% YoY
• ▍Net income +10,0% YoY
• ▍Free cash flow +6,8% YoY
• ▍Net margin 44.8%