APA Corporation (APA)
Debt-to-equity 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-equity ratio | 0.00 | 2.16 | — | — | 2.63 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $4,732,000K
= 0.00
The debt-to-equity ratio of APA Corporation has fluctuated significantly over the past five years. In 2019, the ratio stood at 2.63, indicating that the company had a higher level of debt compared to its equity. This may imply potential financial risk due to a heavy reliance on debt financing.
In 2020, the debt-to-equity ratio decreased to 1.95, suggesting that the company had reduced its debt relative to equity compared to the previous year. This could indicate a positive shift towards a more balanced capital structure.
The ratio spiked to a notably high level of 12.89 in 2022, representing a substantial increase in debt relative to equity. Such a high ratio may raise concern among investors and creditors about the company's ability to meet its debt obligations.
The absence of data for 2021 indicates a lack of available information to assess the debt-to-equity ratio for that year, making it challenging to gauge the company's financial leverage during that period.
Overall, the fluctuating trend in APA Corporation's debt-to-equity ratio highlights the importance of monitoring the company's capital structure and its ability to manage debt levels effectively to ensure financial stability and sustainability in the long term.
Peer comparison
Dec 31, 2023