Liberty Oilfield Services Inc (LBRT)

Debt-to-assets ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	140,000	217,426	121,445	105,411	105,731
Total assets	US$ in thousands	3,033,560	2,575,930	2,040,660	1,889,940	1,283,430
Debt-to-assets ratio		0.05	0.08	0.06	0.06	0.08

December 31, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $140,000K ÷ $3,033,560K
= 0.05

The debt-to-assets ratio for Liberty Energy Inc has remained relatively stable over the past five years, ranging from 0.07 to 0.12. This metric indicates the proportion of the company's assets that are financed through debt, with lower values suggesting lower financial risk. The company maintained a conservative approach to debt utilization in 2021 and 2022, as evidenced by the ratio of 0.07 for both years. This implies that only a small portion of the company's assets were funded by debt during these periods.

However, in 2019, the ratio increased to 0.12, indicating a higher reliance on debt to finance its assets. The subsequent decrease in the ratio in 2021 and 2022 suggests that Liberty Energy Inc may have adjusted its capital structure to reduce debt levels and improve its financial stability.

Overall, the consistent low to moderate debt-to-assets ratio for Liberty Energy Inc indicates a prudent financial management strategy, balancing the use of debt to support operations while maintaining a healthy level of asset coverage.