Chesapeake Energy Corp (CHK)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 2,028,000 | 3,093,000 | 2,278,000 | 0 | 9,073,000 |
| Total assets | US$ in thousands | 14,376,000 | 15,468,000 | 11,009,000 | 6,584,000 | 16,193,000 |
| Debt-to-assets ratio | 0.14 | 0.20 | 0.21 | 0.00 | 0.56 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $2,028,000K ÷ $14,376,000K
= 0.14
The debt-to-assets ratio of Chesapeake Energy Corp has shown fluctuations over the past five years. In 2023, the ratio stands at 0.14, representing a decrease from the previous year's 0.20. This indicates that the company's total debt, relative to its total assets, has decreased, suggesting a more favorable financial position in terms of leverage.
Looking back at 2022 and 2021, the company's debt-to-assets ratio was 0.20 and 0.21, respectively, showing a relatively consistent level of leverage during those years. However, a notable improvement was observed in 2020 when the ratio was 0.00, which suggests that the company had no debt relative to its assets that year.
In contrast, the highest debt-to-assets ratio of 0.56 was recorded in 2019, signifying a significant increase in leverage compared to the subsequent years. This peak in leverage could indicate higher financial risk and dependency on debt financing for Chesapeake Energy Corp during that period.
Overall, the trend in the debt-to-assets ratio for Chesapeake Energy Corp has displayed variability over the five-year period, with the most recent ratio in 2023 showing a lower level of debt relative to assets compared to previous years, indicating a potentially improved financial position in terms of leverage.
Peer comparison
Dec 31, 2023