California Resources Corp (CRC)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 540,000 | 592,000 | 589,000 | 4,877,000 | 4,500,000 |
| Total assets | US$ in thousands | 3,998,000 | 3,967,000 | 3,846,000 | 6,958,000 | 7,158,000 |
| Debt-to-assets ratio | 0.14 | 0.15 | 0.15 | 0.70 | 0.63 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $540,000K ÷ $3,998,000K
= 0.14
The debt-to-assets ratio for California Resources Corporation has shown a slight improvement over the years, decreasing from 0.15 in both 2022 and 2021 to 0.14 in 2023. This ratio indicates that for every dollar of assets, the company had $0.14 of debt in 2023. A lower debt-to-assets ratio is generally considered favorable as it suggests that the company is relying less on debt financing to fund its operations and investments.
The decrease in the debt-to-assets ratio may indicate that California Resources Corporation has either reduced its debt levels or increased its asset base in 2023. A lower ratio could be a positive sign for the company's financial health as it may signal improved financial stability and lower financial risk. However, it is important to consider other factors such as the company's overall debt levels, industry norms, and economic conditions when evaluating the significance of this ratio.
Peer comparison
Dec 31, 2023