Consol Energy Inc (CEIX)
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 | 181,885 | 342,110 | 568,052 | 566,858 | 653,802 |
| Total stockholders’ equity | US$ in thousands | 1,343,440 | 1,165,830 | 672,813 | 553,519 | 435,199 |
| Debt-to-capital ratio | 0.12 | 0.23 | 0.46 | 0.51 | 0.60 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $181,885K ÷ ($181,885K + $1,343,440K)
= 0.12
The debt-to-capital ratio measures the proportion of a company's capital structure that is comprised of debt. Looking at the trend for Consol Energy Inc over the past five years, we observe a consistent decrease in the debt-to-capital ratio from 0.62 in 2019 to 0.13 in 2023.
This decreasing trend indicates that the company has been reducing its reliance on debt financing in relation to its total capital structure. A lower debt-to-capital ratio suggests a healthier financial position, as it indicates less financial risk and potentially greater financial stability.
The significant decline in the debt-to-capital ratio could be interpreted as a positive sign, reflecting prudent financial management by the company. It may indicate that Consol Energy Inc has been actively deleveraging its balance sheet, reducing its debt levels or increasing its equity capital.
Overall, the decreasing trend in Consol Energy Inc's debt-to-capital ratio over the past five years suggests an improving financial position and a potentially stronger balance sheet with less dependence on debt financing.
Peer comparison
Dec 31, 2023