Devon Energy Corporation (DVN)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 24,490,000 | 23,721,000 | 21,025,000 | 9,912,000 | 13,717,000 |
| Total stockholders’ equity | US$ in thousands | 12,061,000 | 11,167,000 | 9,262,000 | 2,885,000 | 5,802,000 |
| Financial leverage ratio | 2.03 | 2.12 | 2.27 | 3.44 | 2.36 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $24,490,000K ÷ $12,061,000K
= 2.03
The financial leverage ratio of Devon Energy Corp. has exhibited some fluctuations over the past five years. The ratio decreased from 3.44 in 2020 to 2.36 in 2019, showing a significant decline in leverage. However, from 2019 to 2021, the ratio increased from 2.36 to 2.27, indicating a slightly higher level of leverage.
In the most recent year, 2023, the financial leverage ratio further decreased to 2.03, reflecting a lower level of reliance on debt to finance the company's operations compared to the previous years. This reduction in leverage could signify improved financial stability and potentially lower risk for the company.
Overall, the trend in Devon Energy Corp.'s financial leverage ratio suggests some volatility over the past five years, with fluctuations in the level of leverage employed by the company to support its activities.
Peer comparison
Dec 31, 2023