Chord Energy Corp (CHRD)

Based on the solvency ratios of Chord Energy Corp, the company appears to be in a strong financial position with consistently low debt levels and solid financial leverage ratios over the past five years.

1. Debt-to-assets ratio: The debt-to-assets ratio for Chord Energy Corp has remained at 0.00 for each year from 2020 to 2024. This indicates that the company has not relied heavily on debt to finance its assets, suggesting a low level of financial risk.

2. Debt-to-capital ratio: Similar to the debt-to-assets ratio, the debt-to-capital ratio also stayed at 0.00 for the same period. This implies that Chord Energy Corp has been able to maintain a capital structure with minimal debt, further supporting the company's financial stability.

3. Debt-to-equity ratio: The debt-to-equity ratio remained at 0.00 throughout the years 2020 to 2024. This indicates that Chord Energy Corp has had no debt in relation to its equity, highlighting a strong equity position and a lower level of financial risk.

4. Financial leverage ratio: The financial leverage ratio for Chord Energy Corp has fluctuated slightly over the years but generally remained relatively low. Starting at 2.36 in 2020, it decreased to 1.36 in 2023 before slightly increasing to 1.50 in 2024. This suggests that the company has been able to effectively manage its financial leverage, maintaining a balance between debt and equity to support its operations.

Overall, the consistently low debt levels and stable financial leverage ratios indicate that Chord Energy Corp has a strong solvency position, with minimal financial risk and a healthy balance between debt and equity in its capital structure.

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Coverage ratios

Interest coverage ratio measures a company's ability to cover its interest expenses with its operating income. A higher ratio indicates that the company is more capable of meeting its interest obligations.

Chord Energy Corp's interest coverage ratio has shown significant improvement over the period from 2020 to 2024. In December 2020, the ratio was extremely low at -22.97, indicating that the company's operating income was insufficient to cover its interest expenses. However, by December 2022, the ratio had improved to a healthy 54.08, suggesting that the company's ability to cover interest payments had strengthened significantly.

The trend continued in the following years, with the interest coverage ratio remaining relatively high at 47.77 in December 2023 and 20.68 in December 2024. This indicates that Chord Energy Corp's operating income continued to be robust enough to comfortably cover its interest expenses, though at a slightly lower level compared to 2022.

Overall, the upward trend in Chord Energy Corp's interest coverage ratio from negative levels to positive levels demonstrates an improved ability to meet its interest obligations, indicating a positive financial performance and increased financial stability over the analyzed period.