Vital Energy Inc. (VTLE)

Debt-to-assets ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	1,609,420	1,113,020	1,425,860	1,179,270	1,170,420
Total assets	US$ in thousands	5,149,580	2,726,110	2,551,820	1,442,610	2,264,440
Debt-to-assets ratio		0.31	0.41	0.56	0.82	0.52

December 31, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $1,609,420K ÷ $5,149,580K
= 0.31

The debt-to-assets ratio of Vital Energy Inc. has fluctuated over the past five years, indicating changes in the company's leverage and capital structure.

In 2023, the debt-to-assets ratio decreased to 0.31 from 0.41 in 2022, which suggests that the company reduced its reliance on debt financing compared to the previous year. This improvement indicates a stronger financial position and better ability to meet its obligations using its own assets.

Comparing to 2021 and 2020, where the ratios were 0.56 and 0.82 respectively, the continuous decrease in debt-to-assets ratio signifies a trend towards a healthier balance sheet structure with lower debt levels relative to the total assets.

However, in 2019, the ratio was 0.52, which was lower than in 2021 and 2020, indicating that the company had higher debt levels relative to assets at that time.

Overall, the decreasing trend in the debt-to-assets ratio over the past few years indicates that Vital Energy Inc. has been effectively managing its debt levels and improving its financial stability.