Southwestern Energy Company (SWN)
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 | 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-equity ratio | 0.67 | 1.02 | 2.04 | 6.34 | 0.69 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $3,947,000K ÷ $5,888,000K
= 0.67
The debt-to-equity ratio of Southwestern Energy Company has shown significant fluctuations over the past five years. In 2023, the ratio stands at 0.67, indicating a relatively conservative capital structure with lower debt levels compared to equity. This suggests that the company is relying less on debt financing and may have a stronger financial position in terms of its ability to cover debt obligations.
In 2022, the debt-to-equity ratio increased to 1.02, signaling a moderate increase in the company's reliance on debt to fund its operations or growth initiatives. This could indicate a shift towards a slightly more leveraged position compared to the previous year.
In 2021, the ratio spiked to 2.12, implying a significant increase in debt relative to equity. This elevated ratio may raise concerns about the company's financial risk and solvency, as a higher proportion of debt in the capital structure could lead to increased financial leverage and higher interest payment obligations.
The year 2020 saw a substantial surge in the debt-to-equity ratio to 6.34, indicating a very high level of debt compared to equity. This could suggest a highly leveraged position, which may pose risks in terms of financial stability and debt repayment capabilities.
In 2019, the ratio decreased to 0.69, returning to a more balanced level compared to the extreme leverage seen in 2020. This lower ratio suggests a healthier financial position with less reliance on debt.
Overall, the trend in Southwestern Energy Company's debt-to-equity ratio reveals fluctuating levels of leverage over the years, highlighting the importance of monitoring the company's capital structure and debt management policies to assess its financial health and risk profile.
Peer comparison
Dec 31, 2023