Vital Energy Inc. (VTLE)
Debt-to-assets ratio
Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
---|---|---|---|---|---|---|
Long-term debt | US$ in thousands | 2,454,240 | 1,609,420 | 1,113,020 | 1,425,860 | 1,179,270 |
Total assets | US$ in thousands | 5,878,950 | 5,149,580 | 2,726,110 | 2,551,820 | 1,442,610 |
Debt-to-assets ratio | 0.42 | 0.31 | 0.41 | 0.56 | 0.82 |
December 31, 2024 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $2,454,240K ÷ $5,878,950K
= 0.42
The debt-to-assets ratio of Vital Energy Inc. has shown a declining trend over the past five years, indicating an improving financial position in terms of leveraging. Starting at 0.82 in 2020, the ratio has steadily decreased to 0.56 in 2021, further dropping to 0.41 in 2022, and continuing to decrease to 0.31 in 2023. However, there was a slight increase in the ratio to 0.42 in 2024.
The decreasing trend in the debt-to-assets ratio suggests that Vital Energy Inc. has been able to reduce its debt relative to its total assets over the years. This improvement could signify better financial stability and lower financial risk for the company, as it indicates a decreasing reliance on debt financing compared to its asset base. Additionally, the slight increase in 2024 may warrant further investigation to understand the factors driving the change.
Peer comparison
Dec 31, 2024