Coterra Energy Inc (CTRA)
Debt-to-equity 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-equity ratio | 0.12 | 0.17 | 0.27 | 0.43 | 0.53 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,586,000K ÷ $13,039,000K
= 0.12
The debt-to-equity ratio of Coterra Energy Inc has shown a declining trend over the past five years. In 2019, the ratio was at its highest at 0.57, indicating a higher reliance on debt financing compared to equity. However, there has been a consistent decrease in the debt-to-equity ratio since then, reaching 0.17 in both 2022 and 2023.
The decreasing trend in the debt-to-equity ratio suggests that Coterra Energy Inc has been reducing its debt levels relative to equity over the years. This could indicate improved financial stability and risk management, as lower debt levels typically imply lower financial leverage and interest expense burdens.
Overall, the decreasing debt-to-equity ratio of Coterra Energy Inc signals a positive trend in its capital structure, showcasing a gradual shift towards a more balanced mix of debt and equity financing.
Peer comparison
Dec 31, 2023