Coterra Energy Inc (CTRA)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 21,625,000 | 20,415,000 | 20,154,000 | 19,900,000 | 4,524,000 |
| Total stockholders’ equity | US$ in thousands | 13,122,000 | 13,039,000 | 12,659,000 | 11,738,000 | 2,216,000 |
| Financial leverage ratio | 1.65 | 1.57 | 1.59 | 1.70 | 2.04 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $21,625,000K ÷ $13,122,000K
= 1.65
The financial leverage ratio of Coterra Energy Inc has been gradually decreasing over the years, indicating improvements in the company's financial structure and risk management. The ratio decreased from 2.04 in December 31, 2020, to 1.65 in December 31, 2024. This trend suggests that Coterra Energy has been reducing its reliance on debt to finance its operations, which could lead to lower interest expenses and a stronger financial position. A decreasing financial leverage ratio is generally viewed positively by investors and creditors as it signifies a healthier balance between debt and equity in the company's capital structure. Overall, Coterra Energy's declining financial leverage ratio reflects a positive trajectory in managing its financial obligations.
Peer comparison
Dec 31, 2024