Comstock Resources Inc (CRK)

Debt-to-capital ratio

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Long-term debt US$ in thousands 2,640,390 2,152,570 2,615,240 2,517,150 2,500,130
Total stockholders’ equity US$ in thousands 2,358,410 2,278,310 1,012,780 1,266,770 1,143,020
Debt-to-capital ratio 0.53 0.49 0.72 0.67 0.69

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $2,640,390K ÷ ($2,640,390K + $2,358,410K)
= 0.53

The debt-to-capital ratio of Comstock Resources, Inc. has fluctuated over the past five years, ranging from 0.49 to 0.69. In 2023, the ratio stands at 0.53, indicating that debt accounts for 53% of the company's total capital structure. This suggests that the company relies more on debt financing compared to equity.

The decrease in the ratio from 2022 to 2023 may indicate a reduction in debt relative to total capital, which could be a positive indicator of improved financial health and reduced financial risk. However, further analysis is needed to understand the underlying factors driving this change and to assess the sustainability of this trend.

It is important for stakeholders to closely monitor the debt-to-capital ratio over time to assess the company's leverage levels, liquidity, and overall financial stability. Additionally, comparing the ratio with industry benchmarks and peers can provide valuable insights into Comstock Resources, Inc.'s capital structure and financial performance relative to its competitors.