Southwestern Energy Company (SWN)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 5,888,000 | 6,537,000 | 6,489,000 | 6,254,000 | 4,324,000 | 1,414,000 | 1,043,000 | -119,000 | 2,547,000 | -286,000 | -18,000 | 586,000 | 497,000 | 384,000 | 823,000 | 1,701,000 | 3,246,000 | 3,135,000 | 3,082,000 | 2,937,000 |
| Debt-to-capital ratio | 0.40 | 0.39 | 0.38 | 0.39 | 0.50 | 0.77 | 0.83 | 1.02 | 0.67 | 1.08 | 1.01 | 0.83 | 0.86 | 0.86 | 0.75 | 0.57 | 0.41 | 0.41 | 0.42 | 0.44 |
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 shown a declining trend in the most recent quarters, indicating an improvement in the company's capital structure. The ratio decreased from 0.50 in Q4 2022 to 0.40 in Q4 2023, suggesting a reduction in the proportion of debt relative to the company's total capital. This downward trend continued throughout 2023, with the ratio reaching as low as 0.38 in Q2 2023 before slightly increasing to 0.39 in Q3 and Q1 2023.
A decreasing debt-to-capital ratio indicates that the company may be relying less on debt financing and is potentially becoming less leveraged, which can enhance its financial stability and reduce the risks associated with high levels of debt. The significant decrease in the ratio from Q2 2022 to Q1 2023, where it dropped from 1.02 to 0.39, reflects a noticeable improvement in the company's debt management during that period.
Overall, the declining trend in Southwestern Energy Company's debt-to-capital ratio suggests a positive shift towards a more balanced capital structure, potentially improving the company's creditworthiness and financial health.
Peer comparison
Dec 31, 2023