California Resources Corp (CRC)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 2,219,000 | 1,864,000 | 1,688,000 | -389,000 | -361,000 |
| Debt-to-capital ratio | 0.20 | 0.24 | 0.26 | 1.09 | 1.09 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $540,000K ÷ ($540,000K + $2,219,000K)
= 0.20
The debt-to-capital ratio of California Resources Corporation has shown a declining trend over the past three years, decreasing from 0.26 in 2021 to 0.20 in 2023. This suggests that the company has been effective in managing its debt relative to its total capital. A lower debt-to-capital ratio indicates a lower level of financial risk and a stronger financial position, as it implies that a smaller portion of the company's capital structure is reliant on debt financing. Overall, the decreasing trend in the debt-to-capital ratio for California Resources Corporation is a positive sign of the company's improving financial health and prudent debt management.
Peer comparison
Dec 31, 2023