Chesapeake Energy Corp (CHK)
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 | 14,376,000 | 14,248,000 | 14,429,000 | 14,591,000 | 15,468,000 | 14,089,000 | 13,899,000 | 13,293,000 | 11,009,000 | 7,326,000 | 6,999,000 | 6,904,000 | 6,584,000 | 6,903,000 | 6,553,000 | 7,808,000 | 16,193,000 | 16,579,000 | 16,540,000 | 16,637,000 |
| 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 |
| Financial leverage ratio | 1.34 | 1.39 | 1.39 | 1.42 | 1.70 | 2.22 | 2.39 | 2.47 | 1.94 | 2.41 | 2.05 | 1.78 | — | — | — | — | 3.71 | 3.53 | 3.95 | 4.06 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $14,376,000K ÷ $10,729,000K
= 1.34
The financial leverage ratio of Chesapeake Energy Corp has displayed fluctuations over the periods from March 2019 to December 2023. The ratio stood at 1.34 as of December 31, 2023, indicating that for every dollar of equity, the company had $1.34 of debt. This ratio increased from December 2022 to March 2022, reaching a peak of 2.47 in March 2022, suggesting a higher level of financial risk and reliance on debt financing during that period.
Subsequently, the financial leverage ratio declined steadily from March 2022 to June 2023, hovering around 1.39, signifying a reduction in the company's debt relative to equity. However, there was a slight uptick in the ratio to 1.42 as of March 31, 2023.
Comparing the ratios with the same periods in previous years, there was a significant increase in leverage from 2019 to 2020, where the ratio spiked to 4.06 as of March 31, 2020. This sharp rise in leverage indicates a substantial reliance on debt during that period.
Overall, the financial leverage ratio of Chesapeake Energy Corp has shown variability over time, with periods of high and low leverage. It is important for investors and stakeholders to closely monitor these ratios to assess the company's debt levels and financial risk.
Peer comparison
Dec 31, 2023