APA Corporation (APA)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 4,732,000 | 2,258,000 | -618,000 | -1,639,000 | 3,255,000 |
| Debt-to-capital ratio | 0.00 | 0.68 | 1.09 | 1.23 | 0.72 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $4,732,000K)
= 0.00
The debt-to-capital ratio of APA Corporation has fluctuated over the past five years. In 2023, the ratio decreased to 0.66 from 0.93 in 2022, indicating a lower level of financial leverage. This could suggest that APA Corporation has reduced its debt relative to its total capital in 2023 compared to the previous year.
It is notable that in 2021, the ratio was significantly higher at 1.27, indicating a higher proportion of debt in the company's capital structure. This could imply higher financial risk during that year.
The ratio was relatively stable in 2020 at 1.23 and dropped to 0.72 in 2019. The decrease in 2019 might indicate that APA Corporation reduced its debt or increased its equity during that year.
Overall, the trend in the debt-to-capital ratio for APA Corporation shows fluctuations, with a significant decrease observed in 2023 compared to the previous year, potentially indicating a more conservative approach to debt management in the most recent financial period.
Peer comparison
Dec 31, 2023