Devon Energy Corporation (DVN)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	12,061,000	11,167,000	9,262,000	2,885,000	5,802,000
Debt-to-capital ratio		0.32	0.36	0.41	0.60	0.43

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $5,672,000K ÷ ($5,672,000K + $12,061,000K)
= 0.32

The debt-to-capital ratio of Devon Energy Corp. has exhibited a fluctuating trend over the past five years.

In 2019, the ratio stood at 0.44, indicating that 44% of the company's capital structure was funded through debt. However, by the end of 2020, the ratio saw a significant increase to 0.61, suggesting a higher reliance on debt financing compared to previous years.

Subsequently, in 2021, there was a slight decrease in the debt-to-capital ratio to 0.42, which may indicate improved capital management or debt reduction efforts by the company. This trend continued into 2022, where the ratio declined further to 0.37, possibly reflecting more conservative financial decisions or deleveraging strategies.

By the end of 2023, the debt-to-capital ratio reached its lowest point in the past five years at 0.35, demonstrating Devon Energy Corp.'s ongoing efforts to reduce its reliance on debt and strengthen its capital structure.

Overall, the decreasing trend in the debt-to-capital ratio over the years signals a positive shift towards a better balance between debt and capital for Devon Energy Corp., potentially enhancing its financial stability and risk management.