APA Corporation (APA)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | 4,885,000 | 7,295,000 | 8,770,000 | 8,555,000 |
| Total assets | US$ in thousands | 16,944,000 | 14,255,000 | 14,393,000 | 12,746,000 | 18,107,000 |
| Debt-to-assets ratio | 0.00 | 0.34 | 0.51 | 0.69 | 0.47 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $—K ÷ $16,944,000K
= 0.00
The debt-to-assets ratio of APA Corporation has shown some fluctuation over the past five years. In 2023, the ratio stands at 0.34, indicating that 34% of the company's assets are financed by debt. This represents an improvement from 2022 when the ratio was 0.41. The decreasing trend in the ratio over the past two years suggests that the company has been reducing its reliance on debt to finance its assets.
Looking further back, the ratio was significantly higher in 2021 at 0.56 and even higher in 2020 at 0.69, indicating a higher proportion of debt financing in those years. The ratio then decreased in 2019 to 0.47 before the subsequent fluctuations.
Overall, the decreasing trend in the debt-to-assets ratio from 2021 to 2023 indicates a positive shift towards a lower reliance on debt for asset financing. This could signify improved financial stability and reduced risk for APA Corporation as it moves towards a more balanced capital structure.
Peer comparison
Dec 31, 2023