Devon Energy Corporation (DVN)
Debt-to-capital ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 8,398,000 | 8,884,000 | 5,665,000 | 5,668,000 | 5,672,000 | 5,675,000 | 6,169,000 | 6,175,000 | 6,189,000 | 6,196,000 | 6,461,000 | 6,471,000 | 6,482,000 | 6,492,000 | 6,502,000 | 7,042,000 | 4,298,000 | 4,297,000 | 4,296,000 | 4,295,000 |
| Total stockholders’ equity | US$ in thousands | 14,496,000 | 14,277,000 | 12,551,000 | 12,167,000 | 12,061,000 | 11,639,000 | 11,021,000 | 10,977,000 | 11,167,000 | 10,873,000 | 10,090,000 | 9,300,000 | 9,262,000 | 8,924,000 | 8,399,000 | 8,353,000 | 2,885,000 | 3,023,000 | 3,227,000 | 3,919,000 |
| Debt-to-capital ratio | 0.37 | 0.38 | 0.31 | 0.32 | 0.32 | 0.33 | 0.36 | 0.36 | 0.36 | 0.36 | 0.39 | 0.41 | 0.41 | 0.42 | 0.44 | 0.46 | 0.60 | 0.59 | 0.57 | 0.52 |
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
The debt-to-capital ratio for Devon Energy Corporation has displayed a gradual decline over the past few years, indicating a reduction in the proportion of debt relative to the total capital structure. Starting at 0.52 in March 2020, the ratio increased slightly by June 2020, but then proceeded on a downward trend. By December 2021, the debt-to-capital ratio stood at 0.41, signifying that 41% of the company's capital was financed through debt. This decreasing trend continued through the following years, reaching 0.31 as of June 2024.
A declining debt-to-capital ratio can suggest a strengthening financial position, as it implies less reliance on debt financing and a potentially lower risk of financial distress. However, it is important to note that the appropriateness of the debt level should be evaluated in conjunction with other factors such as industry norms, interest coverage ratios, and the company's overall growth and profitability prospects.
Peer comparison
Dec 31, 2024