Coterra Energy Inc (CTRA)

Financial leverage ratio

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Total assets	US$ in thousands	20,415,000	20,101,000	19,879,000	20,139,000	20,154,000	20,305,000	20,647,000	20,327,000	19,900,000	4,730,700	4,610,570	4,550,850	4,524,000	4,419,300	4,527,870	4,522,180	4,487,240	4,442,660	4,563,730	4,481,550
Total stockholders’ equity	US$ in thousands	13,039,000	12,789,000	12,659,000	12,643,000	12,659,000	12,659,000	12,191,000	11,718,000	11,738,000	2,327,000	2,300,000	2,306,000	2,216,000	2,118,490	2,165,980	2,168,400	2,151,000	2,213,580	2,344,800	2,320,940
Financial leverage ratio		1.57	1.57	1.57	1.59	1.59	1.60	1.69	1.73	1.70	2.03	2.00	1.97	2.04	2.09	2.09	2.09	2.09	2.01	1.95	1.93

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $20,415,000K ÷ $13,039,000K
= 1.57

The financial leverage ratio for Coterra Energy Inc has shown a slight fluctuation over the past eight quarters, ranging from 1.56 to 1.73. This ratio indicates the company's level of financial leverage and its reliance on debt financing to support its operations and growth. A higher financial leverage ratio suggests a higher proportion of debt in the company's capital structure, which can increase financial risk but also potentially enhance returns for shareholders during favorable economic conditions.

In the recent quarters, the company has generally maintained a moderate level of financial leverage with the ratio hovering around 1.56 to 1.59. This indicates a balanced approach to capital structure, where Coterra Energy Inc has not excessively relied on debt to finance its operations. However, there was a slight increase in the ratio in Q2 2022 and Q1 2022, reaching 1.69 and 1.73 respectively, which may indicate a temporary increase in debt levels during those periods.

Overall, based on the trend observed in the financial leverage ratio, Coterra Energy Inc appears to manage its debt levels prudently while maintaining a reasonable balance between debt and equity financing. It would be beneficial for the company to continue monitoring and managing its financial leverage ratio to ensure sustainable and efficient capital structure management.