Coterra Energy Inc (CTRA)
Debt-to-equity 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-equity ratio | 0.27 | 0.12 | 0.17 | 0.27 | 0.43 |
December 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $3,535,000K ÷ $13,122,000K
= 0.27
The debt-to-equity ratio of Coterra Energy Inc has shown a declining trend over the years, implying a more conservative capital structure. As of December 31, 2020, the ratio stood at 0.43, indicating that the company had $0.43 in debt for every $1 of equity. Subsequently, the ratio decreased to 0.27 by the end of 2021, showing improved solvency and lower dependency on debt financing. This positive trend continued with a further reduction to 0.17 by December 31, 2022, followed by a notable decline to 0.12 by the end of 2023. However, there was a slight uptick to 0.27 by December 31, 2024.
Overall, the decreasing trend in the debt-to-equity ratio reflects Coterra Energy Inc's efforts to strengthen its financial position by reducing reliance on debt funding relative to equity. This could indicate a lower financial risk and enhanced stability for the company moving forward.
Peer comparison
Dec 31, 2024