Coterra Energy Inc (CTRA)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 1,586,000 | 2,181,000 | 3,125,000 | 946,000 | 1,133,020 |
| Total assets | US$ in thousands | 20,415,000 | 20,154,000 | 19,900,000 | 4,524,000 | 4,487,240 |
| Debt-to-assets ratio | 0.08 | 0.11 | 0.16 | 0.21 | 0.25 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $1,586,000K ÷ $20,415,000K
= 0.08
Coterra Energy Inc's debt-to-assets ratio has been showing a declining trend over the past five years, indicating an improving financial position in terms of debt management. The ratio stood at 0.27 in 2019, reflecting that 27% of the company's total assets were financed through debt. Since then, the ratio has decreased steadily to 0.11 as of December 31, 2023. This decline suggests that Coterra Energy Inc has been reducing its reliance on debt to fund its operations and investments in recent years.
A debt-to-assets ratio of 0.11 as of December 31, 2023, implies that only 11% of the company's total assets are financed by debt. This indicates that Coterra Energy Inc primarily relies on equity financing to support its assets, which can be seen as a positive sign of financial strength and stability. Overall, the decreasing trend in the debt-to-assets ratio suggests that the company has been effectively managing its debt levels and maintaining a healthy balance between debt and equity in its capital structure.
Peer comparison
Dec 31, 2023