Chesapeake Energy Corp (CHK)

Debt-to-capital 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
Long-term debt	US$ in thousands	2,028,000	2,032,000	2,036,000	2,040,000	3,093,000	2,717,000	3,046,000	2,774,000	2,278,000	1,259,000	1,261,000	1,262,000	0	0	0	9,163,000	9,073,000	9,133,000	9,701,000	9,167,000
Total stockholders’ equity	US$ in thousands	10,729,000	10,268,000	10,396,000	10,283,000	9,124,000	6,347,000	5,808,000	5,383,000	5,671,000	3,038,000	3,413,000	3,881,000	-5,341,000	-4,940,000	-4,209,000	-3,945,000	4,364,000	4,696,000	4,191,000	4,097,000
Debt-to-capital ratio		0.16	0.17	0.16	0.17	0.25	0.30	0.34	0.34	0.29	0.29	0.27	0.25	—	—	—	1.76	0.68	0.66	0.70	0.69

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $2,028,000K ÷ ($2,028,000K + $10,729,000K)
= 0.16

The debt-to-capital ratio of Chesapeake Energy Corp has shown fluctuations over the past few quarters. As of December 31, 2023, the ratio stood at 0.16, indicating that only 16% of the company's capital structure was financed by debt. This represents a slight decrease from the previous quarter's ratio of 0.17.

Looking back, there was a significant spike in the debt-to-capital ratio at the end of 2019, reaching 1.76, suggesting a higher reliance on debt to finance the company's operations at that time. Subsequently, there has been a downward trend, with the ratio gradually decreasing to more stable levels around 0.25 to 0.30 in the following quarters.

It is important to note the sharp drop in the debt-to-capital ratio to 0.16 in the most recent quarter, which may indicate a reduction in the company's debt levels or an increase in its equity capital. This decrease could be a positive sign of improved financial health and reduced financial risk for Chesapeake Energy Corp. Further monitoring of the company's debt management strategies and capital structure would be advisable to assess its ongoing financial stability.