SM Energy Co (SM)

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	1,575,330	3,144,420	3,754,620	2,214,320	2,610,300
Total assets	US$ in thousands	6,379,980	5,716,040	5,233,980	4,976,430	6,292,230
Debt-to-assets ratio		0.25	0.55	0.72	0.44	0.41

December 31, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $1,575,330K ÷ $6,379,980K
= 0.25

The debt-to-assets ratio of SM Energy Co has shown a decreasing trend over the past five years, indicating an improvement in the company's financial leverage and risk management. The ratio decreased from 0.43 in 2019 to 0.25 in 2023, signaling a reduction in the proportion of debt relative to total assets. This trend suggests that the company may be relying less on debt to finance its operations and investments, which could enhance its financial stability and resilience to economic downturns. Overall, the decreasing debt-to-assets ratio reflects a positive development in SM Energy Co's financial health and risk profile.