SM Energy Co (SM)

Debt-to-assets ratio

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Long-term debt	US$ in thousands	1,575,330	1,574,550	1,573,770	1,572,990	3,144,420	3,142,860	3,141,300	3,960,780	3,754,620	4,155,260	4,331,750	4,386,300	2,214,320	2,175,040	193,000	2,645,380	2,610,300	2,735,770	2,721,240	2,646,290
Total assets	US$ in thousands	6,379,980	6,078,570	5,992,630	5,870,160	5,716,040	5,651,510	5,339,120	5,395,780	5,233,980	5,061,960	5,053,000	5,015,640	4,976,430	5,122,280	5,267,630	5,615,020	6,292,230	6,453,080	6,391,940	6,286,620
Debt-to-assets ratio		0.25	0.26	0.26	0.27	0.55	0.56	0.59	0.73	0.72	0.82	0.86	0.87	0.44	0.42	0.04	0.47	0.41	0.42	0.43	0.42

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 been gradually decreasing over the past eight quarters, indicative of the company's improved financial health and lower reliance on debt to finance its operations. The ratio decreased from 0.37 in Q1 2022 to 0.25 in Q4 2023. This trend suggests that SM Energy Co has been effectively managing its debt levels relative to its total assets, demonstrating a stronger ability to cover its debt obligations using its asset base. It is also worth noting that the company's debt-to-assets ratio consistently remained below 0.3 for the past four quarters, indicating a relatively low financial risk and a solid balance sheet position. Overall, the decreasing trend in the debt-to-assets ratio reflects positively on SM Energy Co's financial stability and leverage management.