Southwestern Energy Company (SWN)
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 | 3,947,000 | 4,114,000 | 4,036,000 | 3,935,000 | 4,392,000 | 4,855,000 | 5,081,000 | 4,895,000 | 5,201,000 | 4,036,000 | 2,814,000 | 2,812,000 | 3,150,000 | 2,450,000 | 2,440,000 | 2,279,000 | 2,242,000 | 2,219,000 | 2,267,000 | 2,267,000 |
| Total assets | US$ in thousands | 11,991,000 | 12,973,000 | 13,001,000 | 12,937,000 | 12,926,000 | 13,104,000 | 12,932,000 | 11,847,000 | 11,848,000 | 9,241,000 | 5,394,000 | 5,247,000 | 5,160,000 | 4,157,000 | 4,555,000 | 5,275,000 | 6,717,000 | 6,598,000 | 6,545,000 | 6,446,000 |
| Debt-to-assets ratio | 0.33 | 0.32 | 0.31 | 0.30 | 0.34 | 0.37 | 0.39 | 0.41 | 0.44 | 0.44 | 0.52 | 0.54 | 0.61 | 0.59 | 0.54 | 0.43 | 0.33 | 0.34 | 0.35 | 0.35 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $3,947,000K ÷ $11,991,000K
= 0.33
The debt-to-assets ratio of Southwestern Energy Company has been showing a decreasing trend over the past eight quarters, indicating an improvement in the company's overall financial leverage. The ratio decreased from 0.41 in Q1 2022 to 0.30 in Q1 2023, reflecting a significant reduction in the proportion of debt to total assets. This trend suggests that the company has been effectively managing its debt levels and increasing its asset base.
A lower debt-to-assets ratio signifies that Southwestern Energy Company relies less on debt financing to support its operations and investments, which may reduce financial risk and enhance its financial stability. It also indicates that the company has a larger proportion of assets financed by equity, which can be viewed positively by investors and creditors as it implies greater ownership and control by shareholders.
Overall, the declining trend in Southwestern Energy Company's debt-to-assets ratio suggests a stronger financial position and improved risk management, which may bode well for the company's future financial performance and sustainability.
Peer comparison
Dec 31, 2023