SM Energy Co (SM)
Debt-to-capital ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 4,237,260 | 3,615,850 | 3,085,460 | 2,063,130 | 2,016,160 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $4,237,260K)
= 0.00
The debt-to-capital ratio for SM Energy Co consistently stands at 0.00 from December 31, 2020, to December 31, 2024. This indicates that the company has not utilized any debt in its capital structure during this period. A debt-to-capital ratio of 0.00 suggests that the company is financing its operations and investments primarily through equity rather than debt, which can be viewed positively as it signifies a lower financial risk and lower interest expenses. It also implies that creditors have a lower claim on the company's assets compared to equity holders. However, it is important to note that while a low debt-to-capital ratio can be advantageous, it may also indicate potential limitations in leveraging opportunities for growth or tax benefits associated with debt financing.
Peer comparison
Dec 31, 2024