Crescent Energy Co (CRGY)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	3,635,720	3,298,990	3,019,660
Debt-to-capital ratio		0.32	0.27	0.25

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,694,380K ÷ ($1,694,380K + $3,635,720K)
= 0.32

The debt-to-capital ratio measures the proportion of a company's capital structure that is funded by debt. Crescent Energy Co's debt-to-capital ratio has been increasing over the past three years, from 0.25 in 2021 to 0.32 in 2023. This indicates that the company has been relying more on debt to finance its operations and investments compared to its capital.

While a higher debt-to-capital ratio can indicate financial leverage and potentially higher returns on equity, it also exposes the company to increased financial risk, especially in periods of economic uncertainty or rising interest rates. It is important for Crescent Energy Co to carefully manage its debt levels to ensure it remains sustainable and does not compromise its financial stability in the long term.