California Resources Corp (CRC)
Debt-to-capital ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 1,132,000 | 540,000 | 592,000 | 589,000 | 4,877,000 |
| Total stockholders’ equity | US$ in thousands | 3,538,000 | 2,219,000 | 1,864,000 | 1,688,000 | -389,000 |
| Debt-to-capital ratio | 0.24 | 0.20 | 0.24 | 0.26 | 1.09 |
December 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,132,000K ÷ ($1,132,000K + $3,538,000K)
= 0.24
From 2019 to 2024, California Resources Corp's debt-to-capital ratio has shown a decreasing trend. In 2019, the ratio was relatively high at 1.09, indicating that a significant portion of the company's capital structure was funded by debt. However, by the end of 2024, the ratio had decreased to 0.24, representing a substantial improvement in the company's leverage position.
This reduction in the debt-to-capital ratio suggests that California Resources Corp has been able to effectively manage its debt levels relative to its total capital over the years. A lower debt-to-capital ratio generally signifies lower financial risk and increased financial stability for the company, as it indicates a smaller reliance on debt for financing its operations.
Overall, the declining trend in California Resources Corp's debt-to-capital ratio reflects a positive financial performance in terms of leverage management, which could potentially enhance the company's ability to weather economic uncertainties and pursue future growth opportunities.
Peer comparison
Dec 31, 2024