Devon Energy Corporation (DVN)

Debt-to-capital ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Long-term debt	US$ in thousands	8,398,000	5,672,000	6,189,000	6,482,000	4,298,000
Total stockholders’ equity	US$ in thousands	14,496,000	12,061,000	11,167,000	9,262,000	2,885,000
Debt-to-capital ratio		0.37	0.32	0.36	0.41	0.60

December 31, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $8,398,000K ÷ ($8,398,000K + $14,496,000K)
= 0.37

Based on the provided data, Devon Energy Corporation's debt-to-capital ratio has shown a decreasing trend over the past five years. In December 2020, the ratio was 0.60, indicating that 60% of the company's capital structure was financed by debt. By December 2024, the ratio had decreased to 0.37, suggesting a reduction in the reliance on debt financing to 37% of the company's capital structure.

This decreasing trend in the debt-to-capital ratio could signify improved financial health and risk management for Devon Energy Corporation. A lower ratio indicates that the company is using less debt relative to its total capital, which may reduce financial risk and enhance financial stability. However, it is important to consider other factors such as interest rates, market conditions, and business strategies when interpreting this ratio in the context of the company's overall financial performance.