Devon Energy Corporation (DVN)
Debt-to-equity 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-equity ratio | 0.47 | 0.55 | 0.70 | 1.49 | 0.74 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $5,672,000K ÷ $12,061,000K
= 0.47
The debt-to-equity ratio of Devon Energy Corp. has been fluctuating over the past five years. In 2023, the ratio decreased to 0.53 from 0.60 in 2022, indicating a reduction in the company's reliance on debt financing compared to equity. This trend suggests improved financial stability and potentially lower financial risk.
Looking back, there was a significant decrease in the debt-to-equity ratio from 1.57 in 2020 to 0.78 in 2019, indicating a shift towards a more balanced capital structure with reduced debt levels relative to equity. However, in 2021, the ratio increased to 0.73, suggesting a temporary increase in debt utilization compared to equity.
Overall, the decreasing trend in the debt-to-equity ratio of Devon Energy Corp. signals a potential improvement in the company's financial leverage and capital structure management. It is essential to monitor future trends in this ratio to assess the company's ongoing ability to manage debt effectively and optimize its capital structure.
Peer comparison
Dec 31, 2023