ConocoPhillips (COP)
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 | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 49,279,000 | 48,003,000 | 45,406,000 | 29,849,000 | 34,981,000 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $49,279,000K
= 0.00
The debt-to-equity ratio of Conoco Phillips has exhibited fluctuations over the past five years, ranging from 0.35 to 0.51. The ratio indicates the proportion of debt financing the company is utilizing in relation to equity. A lower ratio signifies a lesser reliance on debt funding, while a higher ratio indicates a larger proportion of debt in the capital structure.
In 2023, the debt-to-equity ratio stands at 0.38, a slight increase from the previous year. This suggests that the company's debt level relative to equity has inched higher, albeit remaining below the levels seen in 2020 and 2021. The increase in the ratio may signify a strategic shift towards utilizing more debt to fund operations or capital investments.
Comparing the current ratio to that of 2019 and 2020, there has been a favorable reduction in the debt-to-equity ratio, indicating a decrease in reliance on debt financing to support the company's operations or growth initiatives. This could be a positive signal to investors and stakeholders, demonstrating a more balanced capital structure and potentially lower financial risk.
Overall, the debt-to-equity ratio of Conoco Phillips has shown variability over the past five years, with the company managing its debt and equity mix to support its business activities. The recent increase in the ratio may warrant further monitoring to assess the implications for the company's financial health and capital structure management strategy.
Peer comparison
Dec 31, 2023