SM Energy Co (SM)
Debt-to-equity 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 stockholders’ equity | US$ in thousands | 3,615,850 | 3,085,460 | 2,063,130 | 2,016,160 | 2,748,990 |
| Debt-to-equity ratio | 0.44 | 1.02 | 1.82 | 1.10 | 0.95 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,575,330K ÷ $3,615,850K
= 0.44
The debt-to-equity ratio of SM Energy Co has exhibited a decreasing trend over the past five years, indicating a lower reliance on debt financing in relation to equity. In 2023, the ratio stands at 0.44, down from 0.51 in 2022 and significantly lower than the ratios of 1.01 in 2021, 1.10 in 2020, and 0.99 in 2019. This decline suggests that the company has been progressively reducing its debt levels or increasing its equity, which could improve its financial stability and creditworthiness. A lower debt-to-equity ratio generally indicates a healthier balance sheet and lower financial risk, as the company has less debt to repay in proportion to its shareholders' equity. This trend may reflect strategic decisions by SM Energy Co to manage its capital structure prudently and optimize its financial position.
Peer comparison
Dec 31, 2023