Crescent Energy Co (CRGY)

Debt-to-assets ratio

		Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021
Long-term debt	US$ in thousands	3,225,170	2,403,680	1,749,230	1,694,380	1,912,190	1,331,560	1,244,590	1,247,560	1,372,330	1,515,700	1,626,870	1,030,410
Total assets	US$ in thousands	9,250,430	7,480,820	6,797,920	6,803,340	6,986,430	6,148,260	6,111,710	6,019,850	6,229,590	6,273,670	6,174,490	5,157,460
Debt-to-assets ratio		0.35	0.32	0.26	0.25	0.27	0.22	0.20	0.21	0.22	0.24	0.26	0.20

September 30, 2024 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $3,225,170K ÷ $9,250,430K
= 0.35

The debt-to-assets ratio of Crescent Energy Co has fluctuated over the past several quarters. The ratio represents the proportion of the company's total debt to its total assets. A higher ratio indicates that the company is more leveraged or reliant on debt to finance its operations.

Looking at the trend, we see that the debt-to-assets ratio has generally increased from the low of 0.20 in December 2021 to the high of 0.35 in September 2024. This suggests that Crescent Energy Co has taken on more debt relative to its assets during this period.

Although the ratio dipped in the first quarter of 2023 to 0.20, it trended upwards reaching its peak in September 2024. This increase could be due to various reasons such as taking on more debt for expansion projects, acquisitions, or to support working capital needs.

Crescent Energy Co's management should closely monitor this trend as a high debt-to-assets ratio can indicate higher financial risk and may impact the company's ability to meet its debt obligations in the long run. It is essential for the company to strike a balance between debt utilization and financial stability to ensure sustainable growth and profitability.