Devon Energy Corporation (DVN)
Debt-to-capital ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 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 | 4,294,000 | 4,295,000 | 4,294,000 | 5,786,000 |
| Total stockholders’ equity | US$ in thousands | 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 | 5,802,000 | 6,542,000 | 6,994,000 | 7,857,000 |
| Debt-to-capital ratio | 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 | 0.43 | 0.40 | 0.38 | 0.42 |
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 for Devon Energy Corp. has been relatively stable over the past eight quarters, fluctuating within a narrow range of 0.35 to 0.42. This ratio indicates the proportion of the company's capital structure that is financed by debt, with lower values suggesting lower financial leverage.
The downward trend from Q1 2022 to Q4 2023 indicates a decrease in the reliance on debt financing compared to total capital employed, which may suggest improved financial stability and reduced risk. However, the ratio saw a slight increase in Q3 2023 and Q2 2023, which could indicate a temporary increase in debt relative to capital during those periods.
Overall, while the debt-to-capital ratio for Devon Energy Corp. remains within a moderate range, it is important for investors and analysts to monitor any potential shifts in the company's capital structure and debt levels to assess the associated financial risks and implications for future performance.
Peer comparison
Dec 31, 2023