SM Energy Co (SM)
Debt-to-equity 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-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $4,237,260K
= 0.00
Based on the provided data, SM Energy Co has consistently maintained a debt-to-equity ratio of 0.00 from December 31, 2020, to December 31, 2024. A debt-to-equity ratio of 0.00 indicates that the company has no debt in its capital structure relative to its equity. This may suggest that SM Energy Co has been operating with a lower level of financial leverage, relying more on equity financing rather than debt financing to fund its operations and investments. Having a low or zero debt-to-equity ratio can be seen as a positive indicator of financial stability and lower financial risk, as the company is not highly leveraged and has lower obligations to creditors. It also implies that the company may have more financial flexibility and a stronger ability to weather economic downturns or adverse business conditions. However, it's important to consider the context of the industry and overall financial strategy of the company when interpreting this ratio, as different sectors and companies may have varying optimal levels of debt and equity in their capital structures.
Peer comparison
Dec 31, 2024