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.