APA Corporation (APA)
Financial leverage ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 19,390,000 | 19,376,000 | 20,195,000 | 14,952,000 | 15,244,000 | 13,545,000 | 13,244,000 | 13,213,000 | 13,147,000 | 13,629,000 | 12,924,000 | 12,476,000 | 13,303,000 | 13,310,000 | 13,512,000 | 13,127,000 | 12,746,000 | 12,875,000 | 12,999,000 | 13,391,000 |
| Total stockholders’ equity | US$ in thousands | 5,280,000 | 5,114,000 | 5,423,000 | 2,607,000 | 2,655,000 | 1,078,000 | 709,000 | 444,000 | 423,000 | 600,000 | 584,000 | -18,000 | -1,595,000 | -1,095,000 | -964,000 | -1,258,000 | -1,639,000 | -1,641,000 | -1,635,000 | -1,246,000 |
| Financial leverage ratio | 3.67 | 3.79 | 3.72 | 5.74 | 5.74 | 12.56 | 18.68 | 29.76 | 31.08 | 22.72 | 22.13 | — | — | — | — | — | — | — | — | — |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $19,390,000K ÷ $5,280,000K
= 3.67
The financial leverage ratio for APA Corporation shows a declining trend from June 2022 to December 2024. The ratio was 22.13 in June 2022, increased to 22.72 in September 2022, and reached its peak at 31.08 by December 2022. However, from then on, it started decreasing significantly, dropping to 18.68 by June 2023, 12.56 by September 2023, and further decreasing to 5.74 by December 2023. The ratio remained stable at 5.74 from March 2024 to June 2024, and then experienced a slight increase to 3.72 by September 2024, followed by a slight decrease to 3.67 by December 2024.
This indicates that the company was initially utilizing more debt to finance its operations and investments, as reflected in the increasing leverage ratio. However, the decreasing trend of the ratio from June 2023 onwards suggests a reduction in the company's reliance on debt and a potential improvement in its financial stability and ability to meet its obligations. This could be seen as a positive sign as lower leverage ratios generally indicate lower financial risk and less dependency on debt financing.
Peer comparison
Dec 31, 2024