APA Corporation (APA)
Financial leverage ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 16,944,000 | 14,799,000 | 14,572,000 | 14,259,000 | 14,255,000 | 14,192,000 | 13,839,000 | 13,494,000 | 14,393,000 | 14,426,000 | 14,388,000 | 13,975,000 | 12,746,000 | 12,875,000 | 12,999,000 | 13,391,000 | 18,107,000 | 21,405,000 | 21,806,000 | 21,751,000 |
| Total stockholders’ equity | US$ in thousands | 4,732,000 | 3,094,000 | 2,700,000 | 2,404,000 | 2,258,000 | 1,831,000 | 1,508,000 | 932,000 | -618,000 | -179,000 | -92,000 | -410,000 | -1,639,000 | -1,641,000 | -1,635,000 | -1,246,000 | 3,255,000 | 6,301,000 | 6,551,000 | 6,989,000 |
| Financial leverage ratio | 3.58 | 4.78 | 5.40 | 5.93 | 6.31 | 7.75 | 9.18 | 14.48 | — | — | — | — | — | — | — | — | 5.56 | 3.40 | 3.33 | 3.11 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $16,944,000K ÷ $4,732,000K
= 3.58
The financial leverage ratio of APA Corporation has shown fluctuation over the past eight quarters. The ratio stood at 5.74 in Q4 2023, which was a significant decrease from the previous quarter's ratio of 12.56. This indicates that the company's reliance on debt to finance its assets decreased substantially in Q4 2023.
In Q3 2023, the financial leverage ratio spiked to 12.56 from 18.68 in Q2 2023, suggesting a significant increase in leverage during that period. However, the ratio had been steadily decreasing from 31.08 in Q4 2022, indicating a reduction in debt relative to assets.
Looking further back, in Q1 2023, the financial leverage ratio increased to 29.76, which was a substantial jump from the previous quarter. This suggests a higher level of debt usage to finance APA Corporation's assets during that period.
Overall, the financial leverage ratio of APA Corporation has shown variability in recent quarters, indicating changes in the company's debt management and capital structure strategies. It is essential for investors and stakeholders to closely monitor these fluctuations to assess the company's risk and financial health.
Peer comparison
Dec 31, 2023