Devon Energy Corporation (DVN)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 5,672,000 | 6,189,000 | 6,482,000 | 4,298,000 | 4,294,000 |
| Total assets | US$ in thousands | 24,490,000 | 23,721,000 | 21,025,000 | 9,912,000 | 13,717,000 |
| Debt-to-assets ratio | 0.23 | 0.26 | 0.31 | 0.43 | 0.31 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $5,672,000K ÷ $24,490,000K
= 0.23
The debt-to-assets ratio for Devon Energy Corp. has exhibited a declining trend over the past five years, indicating an improved ability to pay off its debts using its assets. In specific, the ratio decreased from 0.33 in 2019 to 0.26 in 2023. This suggests that the company has reduced its reliance on debt financing in relation to its total assets, which can be considered a positive financial indicator. The decrease in the ratio signifies increased financial stability and a lower level of financial risk, as the company is gradually becoming less leveraged and more capable of covering its obligations with its existing assets. The declining trend in the debt-to-assets ratio may signify effective debt management by the company, leading to a stronger financial position and potentially greater investor confidence. Overall, the decreasing trend in Devon Energy Corp.'s debt-to-assets ratio indicates improved financial health and prudent debt management strategies.
Peer comparison
Dec 31, 2023