California Resources Corp (CRC)

Debt-to-equity 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-equity ratio		0.24	0.32	0.35	—	—

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $540,000K ÷ $2,219,000K
= 0.24

The debt-to-equity ratio of California Resources Corporation has been decreasing over the past three years, indicating a positive trend towards a lower level of financial leverage.

As of December 31, 2023, the company's debt-to-equity ratio stands at 0.24, which suggests that for every $1 of equity, the company has $0.24 in debt. This ratio has improved compared to the preceding two years, where the ratios were 0.32 as of December 31, 2022, and 0.35 as of December 31, 2021.

A lower debt-to-equity ratio signifies that the company relies less on debt financing and has a stronger equity base to support its operations. This can be seen as a positive indicator of financial stability and risk management, as a lower ratio indicates a lower risk of financial distress due to excessive debt burden.

Overall, the decreasing trend in the debt-to-equity ratio of California Resources Corporation reflects a prudent financial strategy aimed at reducing financial risk and enhancing long-term sustainability.