Devon Energy Corporation (DVN)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 30,489,000 | 24,490,000 | 23,721,000 | 21,025,000 | 9,912,000 |
| Total stockholders’ equity | US$ in thousands | 14,496,000 | 12,061,000 | 11,167,000 | 9,262,000 | 2,885,000 |
| Financial leverage ratio | 2.10 | 2.03 | 2.12 | 2.27 | 3.44 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $30,489,000K ÷ $14,496,000K
= 2.10
The financial leverage ratio of Devon Energy Corporation has shown a declining trend over the past five years. The ratio decreased from 3.44 on December 31, 2020, to 2.27 on December 31, 2021, and continued to decrease steadily to 2.12 on December 31, 2022, 2.03 on December 31, 2023, and finally to 2.10 on December 31, 2024. This indicates that the company has been reducing its reliance on debt to finance its operations and investments over the years. A lower financial leverage ratio suggests that Devon Energy Corporation is becoming less dependent on debt financing, which can be viewed positively in terms of financial risk and stability.
Peer comparison
Dec 31, 2024