Coterra Energy Inc (CTRA)
Debt-to-capital ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 3,535,000 | 1,586,000 | 2,181,000 | 3,125,000 | 946,000 |
| Total stockholders’ equity | US$ in thousands | 13,122,000 | 13,039,000 | 12,659,000 | 11,738,000 | 2,216,000 |
| Debt-to-capital ratio | 0.21 | 0.11 | 0.15 | 0.21 | 0.30 |
December 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $3,535,000K ÷ ($3,535,000K + $13,122,000K)
= 0.21
The debt-to-capital ratio of Coterra Energy Inc has exhibited a declining trend over the past five years, decreasing from 0.30 as of December 31, 2020, to 0.21 as of December 31, 2021, further decreasing to 0.15 as of December 31, 2022, reaching 0.11 as of December 31, 2023, and then slightly increasing to 0.21 as of December 31, 2024.
This indicates that the company has been reducing its reliance on debt financing in relation to its total capital structure over the years, which can be seen as a positive sign. However, the slight increase in the ratio in 2024 suggests a potential shift in the capital structure towards more debt. Further analysis and consideration of the company's financial strategy and industry dynamics would be necessary to fully assess the implications of this trend.
Peer comparison
Dec 31, 2024