Coterra Energy Inc (CTRA)

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	1,586,000	2,181,000	3,125,000	946,000	1,133,020
Total stockholders’ equity	US$ in thousands	13,039,000	12,659,000	11,738,000	2,216,000	2,151,000
Debt-to-capital ratio		0.11	0.15	0.21	0.30	0.35

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,586,000K ÷ ($1,586,000K + $13,039,000K)
= 0.11

Coterra Energy Inc's debt-to-capital ratio has shown a decreasing trend over the past five years. The ratio decreased from 0.36 in 2019 to 0.14 in 2023. This indicates a significant improvement in the company's leverage position and financial risk.

A lower debt-to-capital ratio suggests that Coterra Energy relies less on debt financing and has a stronger capital structure. This can be viewed positively by investors and creditors as it indicates a lower level of financial risk and improved solvency.

The decreasing trend in the debt-to-capital ratio may reflect Coterra Energy's efforts to reduce its debt levels, potentially through debt repayments or better management of capital structure. The company's ability to lower its debt-to-capital ratio over the years signifies improved financial health and a more sustainable approach to financing its operations.

Overall, a declining debt-to-capital ratio for Coterra Energy Inc suggests a positive financial trend, indicating improved financial stability and reduced reliance on debt financing.