Crescent Energy Co (CRGY)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Long-term debt | US$ in thousands | 1,694,380 | 1,247,560 | 1,030,410 |
| Total assets | US$ in thousands | 6,803,340 | 6,019,850 | 5,157,460 |
| Debt-to-assets ratio | 0.25 | 0.21 | 0.20 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $1,694,380K ÷ $6,803,340K
= 0.25
The debt-to-assets ratio of Crescent Energy Co has shown a gradual increase over the past three years. As of December 31, 2023, the ratio stands at 0.25, indicating that 25% of the company's total assets are funded by debt. This represents an increase from 0.21 in 2022 and 0.20 in 2021.
The rising trend in the debt-to-assets ratio suggests that Crescent Energy Co has been relying more on debt financing to support its operations and growth initiatives. While a higher debt-to-assets ratio can signify increased financial leverage, it also exposes the company to higher financial risk due to the obligation of servicing debt payments.
It is essential for stakeholders to closely monitor the debt levels of Crescent Energy Co to ensure that the company can manage its debt obligations effectively and sustainably in the long term. Additionally, the company's ability to generate sufficient cash flow to cover its debt payments and maintain a healthy financial position should be carefully assessed.
Peer comparison
Dec 31, 2023