UAN CVR Nitrogen: Long-Term Debt to Capital Coefficient

The historical price chart for CVR Partners, LP (UAN) reflects the performance of the company, a supplier of nitrogen components for the agricultural sector, where the indicator stands at 1.76. The business leverages the strategic location of its facilities in the heart of the US corn belt to reduce transportation costs. Massive capital expenditures in plants and the pressure of EPA environmental regulations create an insurmountable barrier to entry for new players. Meanwhile, revenues remain volatile due to dependence on gas prices and the global grain market.

This indicator assesses financial stability by determining the proportion of liabilities with a maturity exceeding one year within the equity structure to control default risks. The current long-term debt-to-equity ratio of 1.76 confirms the effective resource management of CVR Partners, LP, whose model of outsourced logistics and formula-based contracts minimizes capital expenditures and operational dependence.