Coterra Energy Inc (CTRA)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 20,415,000 | 20,154,000 | 19,900,000 | 4,524,000 | 4,487,240 |
| Total stockholders’ equity | US$ in thousands | 13,039,000 | 12,659,000 | 11,738,000 | 2,216,000 | 2,151,000 |
| Financial leverage ratio | 1.57 | 1.59 | 1.70 | 2.04 | 2.09 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $20,415,000K ÷ $13,039,000K
= 1.57
The financial leverage ratio of Coterra Energy Inc has been gradually decreasing over the past five years, indicating a decreasing reliance on debt to finance its operations. In 2019 and 2020, the company had a higher financial leverage ratio of 2.09 and 2.04 respectively, suggesting a higher proportion of debt in its capital structure during those years.
However, there has been a steady decline in the financial leverage ratio since 2020, reaching 1.56 in 2023. This decline may indicate a shift towards a more conservative capital structure with reduced debt levels or an increase in equity financing.
Overall, the decreasing trend in the financial leverage ratio suggests that Coterra Energy Inc has been managing its debt levels effectively and potentially reducing financial risks associated with high leverage.
Peer comparison
Dec 31, 2023