Vital Energy Inc. (VTLE)

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	1,609,420	1,926,970	1,619,600	1,163,810	1,113,020	1,181,580	1,291,240	1,421,820	1,425,860	1,349,900	1,306,110	1,145,370	1,179,270	1,218,950	1,258,160	1,257,380	1,170,420	979,972	1,029,530	1,064,080
Total stockholders’ equity	US$ in thousands	2,785,260	1,773,060	1,603,570	1,225,370	1,110,750	1,000,670	679,456	423,788	513,780	224,062	-154,282	-68,568	-21,443	141,512	376,020	919,221	841,874	1,079,250	1,344,320	1,171,430
Debt-to-capital ratio		0.37	0.52	0.50	0.49	0.50	0.54	0.66	0.77	0.74	0.86	1.13	1.06	1.02	0.90	0.77	0.58	0.58	0.48	0.43	0.48

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,609,420K ÷ ($1,609,420K + $2,785,260K)
= 0.37

The debt-to-capital ratio of Vital Energy Inc. has fluctuated over the past five years, ranging from 0.37 to 1.13. The ratio measures the proportion of the company's total debt to its total capital (debt + equity). A lower ratio indicates a lower level of debt relative to the company's total capital structure, which generally signifies lower financial risk.

In recent quarters, the company has shown some volatility in its debt-to-capital ratio, with a peak of 1.13 in the third quarter of 2021 and a low of 0.37 in the fourth quarter of 2019. The increasing trend observed from 2019 to early 2022 could suggest the company took on more debt relative to its capital during that period.

However, from mid-2022 to the most recent quarter, there seems to be a decreasing trend in the debt-to-capital ratio. This may indicate that the company has been actively managing its debt levels or increasing its equity base to strengthen its financial position.

Overall, a debt-to-capital ratio of around 0.50 to 0.70 is generally considered healthy for most companies, striking a balance between leveraging debt for growth opportunities while maintaining financial stability. Investors and analysts should continue to monitor Vital Energy Inc.'s debt levels to assess its financial health and risk profile.