APA Corporation (APA)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 19,390,000 | 15,244,000 | 13,147,000 | 13,303,000 | 12,746,000 |
| Total stockholders’ equity | US$ in thousands | 5,280,000 | 2,655,000 | 423,000 | -1,595,000 | -1,639,000 |
| Financial leverage ratio | 3.67 | 5.74 | 31.08 | — | — |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $19,390,000K ÷ $5,280,000K
= 3.67
The financial leverage ratio of APA Corporation has shown significant fluctuations over the years. This ratio was unavailable for analysis in the financial years ending December 31, 2020 and 2021. However, in December 31, 2022, the financial leverage ratio was notably high at 31.08, suggesting a high level of debt relative to equity.
Subsequently, in December 31, 2023, there was a significant decrease in the financial leverage ratio to 5.74, indicating a reduction in the company's reliance on debt financing compared to the previous year. This could imply a more conservative financial approach or deleveraging efforts undertaken by APA Corporation.
By December 31, 2024, the financial leverage ratio further decreased to 3.67, indicating a continued trend of lower leverage which may suggest a healthier balance sheet structure. Overall, the fluctuating trend in the financial leverage ratio signals changes in the capital structure and financial risk management strategies of APA Corporation in recent years.
Peer comparison
Dec 31, 2024