Chesapeake Energy Corp (CHK)
Debt-to-equity 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 stockholders’ equity | US$ in thousands | 10,729,000 | 9,124,000 | 5,671,000 | -5,341,000 | 4,364,000 |
| Debt-to-equity ratio | 0.19 | 0.34 | 0.40 | — | 2.08 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $2,028,000K ÷ $10,729,000K
= 0.19
The debt-to-equity ratio of Chesapeake Energy Corp has shown a decreasing trend from 2019 to 2023. In 2019, the ratio was substantially high at 2.08, indicating a high level of debt relative to equity. However, the company has been actively decreasing its reliance on debt financing since then, as evidenced by the decreasing trend in subsequent years.
As of December 31, 2023, the debt-to-equity ratio stands at 0.19, suggesting a significant improvement in the company's leverage position compared to the previous years. This lower ratio indicates a more balanced capital structure, with a lower proportion of debt in relation to equity.
Overall, the decreasing trend in the debt-to-equity ratio reflects Chesapeake Energy Corp's efforts to reduce its debt levels and strengthen its financial position, which can be seen as a positive sign for investors and stakeholders.
Peer comparison
Dec 31, 2023