Vital Energy Inc. (VTLE)

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	1,609,420	1,113,020	1,425,860	1,179,270	1,170,420
Total stockholders’ equity	US$ in thousands	2,785,260	1,110,750	513,780	-21,443	841,874
Debt-to-equity ratio		0.58	1.00	2.78	—	1.39

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,609,420K ÷ $2,785,260K
= 0.58

The debt-to-equity ratio of Vital Energy Inc. has shown a fluctuating trend over the past five years, indicating the company's changing capital structure.

In 2023, the debt-to-equity ratio stands at 0.58, which signifies that the company has slightly more equity than debt in its capital structure. This indicates a relatively lower level of financial leverage compared to previous years.

In 2022, the debt-to-equity ratio was 1.00, suggesting that the company had an equal amount of debt and equity in its capital structure. This could indicate a balanced risk profile but also a potential limitation in terms of leveraging opportunities.

The ratio spiked to 2.78 in 2021, indicating a significant increase in debt relative to equity. This high level of leverage may raise concerns about the company's financial stability and ability to meet its debt obligations.

Unfortunately, there is no data available for the debt-to-equity ratio in 2020, making it challenging to assess the company's financial position in that year.

In 2019, the ratio was 1.39, showing that the company had more debt than equity in its capital structure. While this indicates a higher level of leverage, it was not as extreme as in 2021.

Overall, the fluctuation in Vital Energy Inc.'s debt-to-equity ratio suggests varying levels of financial risk and capital structure decisions over the years, which may have implications for the company's financial health and growth prospects.