Southwestern Energy Company (SWN)

Debt-to-capital ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	3,947,000	4,392,000	5,201,000	3,150,000	2,242,000
Total stockholders’ equity	US$ in thousands	5,888,000	4,324,000	2,547,000	497,000	3,246,000
Debt-to-capital ratio		0.40	0.50	0.67	0.86	0.41

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $3,947,000K ÷ ($3,947,000K + $5,888,000K)
= 0.40

The debt-to-capital ratio of Southwestern Energy Company has exhibited fluctuations over the past five years. The trend shows a decrease in the ratio from 0.68 in 2021 to 0.40 in 2023, which indicates an improvement in the company's debt management and capital structure. This declining trend suggests that the company is relying less on debt financing relative to its total capital over the years, indicating potentially lower financial risk and a stronger financial position. However, it is worth noting that in 2020, the ratio spiked to 0.86, which might signify a period of increased leverage and higher debt levels compared to the other years presented.

Overall, the decreasing trend in the debt-to-capital ratio of Southwestern Energy Company from 2021 to 2023 is a positive indicator of the company's ability to reduce its reliance on debt and enhance its capital structure. This trend may imply improved financial stability and resilience in the face of economic challenges and industry risks. However, continued monitoring of the company's debt management practices and capital structure is advisable to ensure sustainable and balanced financing strategies in the future.