Analysis of Solvency Ratios
Quarterly Data
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Devon Energy Corp., solvency ratios (quarterly data)
Based on: 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
- Debt to Equity Ratio
- The debt to equity ratio exhibited an upward trend from early 2019 through the end of 2020, rising from 0.74 at the beginning of 2019 to a peak of 1.49 in December 2020. This indicates an increasing reliance on debt relative to equity during this period. Following this peak, the ratio declined steadily through 2021 and 2022, stabilizing around the range of 0.58 to 0.70. By the third quarter of 2023, the ratio had reduced further to 0.53, suggesting a conservative balance between debt and equity in recent periods.
- Debt to Capital Ratio
- The debt to capital ratio mirrored a similar pattern to the debt to equity ratio, rising from 0.42 in the first quarter of 2019 to a high of 0.60 by the end of 2020. This trend reflects an increasing portion of capital structure being financed by debt. Afterward, the ratio declined in subsequent quarters, reaching approximately 0.35 by the third quarter of 2023. This decline suggests an improvement in capital structure, with less debt relative to total capital over time.
- Debt to Assets Ratio
- The debt to assets ratio increased moderately from 0.32 in early 2019 to 0.43 by the end of 2020, indicating a rise in leverage measured against total assets. Following this peak, the ratio gradually decreased, moving to around 0.25 by the third quarter of 2023. This reduction reflects an enhanced asset base or lower use of debt financing relative to total assets in more recent periods.
- Financial Leverage Ratio
- Financial leverage showed an increasing trend between 2019 and 2020, rising from 2.30 to a maximum of 3.44 in December 2020. This implies the company had greater use of debt relative to equity at that time. From 2021 onward, a consistent decline is observable, with the ratio falling to 2.08 by the third quarter of 2023. This decline points toward a reduction in financial risk through deleveraging or equity growth.
- Overall Analysis
- Over the analyzed period, the company experienced heightened leverage from 2019 through 2020 across all debt-related ratios, coinciding with a peak in debt dependence and financial risk. Beginning in 2021, a clear deleveraging phase is evident, characterized by reductions in debt relative to equity, capital, and assets, as well as decreased financial leverage. This trend suggests an effort to strengthen the balance sheet and manage financial risk more prudently in recent years.
Debt Ratios
Debt to Equity
Devon Energy Corp., debt to equity calculation (quarterly data)
| 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Short-term debt | 487) | 244) | 247) | 251) | 255) | —) | —) | —) | —) | —) | 226) | —) | —) | —) | —) | —) | —) | —) | —) | ||||||
| Long-term debt | 5,675) | 6,169) | 6,175) | 6,189) | 6,196) | 6,461) | 6,471) | 6,482) | 6,492) | 6,502) | 7,042) | 4,298) | 4,297) | 4,296) | 4,295) | 4,294) | 4,295) | 4,294) | 5,786) | ||||||
| Total debt | 6,162) | 6,413) | 6,422) | 6,440) | 6,451) | 6,461) | 6,471) | 6,482) | 6,492) | 6,502) | 7,268) | 4,298) | 4,297) | 4,296) | 4,295) | 4,294) | 4,295) | 4,294) | 5,786) | ||||||
| Stockholders’ equity attributable to Devon | 11,639) | 11,021) | 10,977) | 11,167) | 10,873) | 10,090) | 9,300) | 9,262) | 8,924) | 8,399) | 8,353) | 2,885) | 3,023) | 3,227) | 3,919) | 5,802) | 6,542) | 6,994) | 7,857) | ||||||
| Solvency Ratio | |||||||||||||||||||||||||
| Debt to equity1 | 0.53 | 0.58 | 0.59 | 0.58 | 0.59 | 0.64 | 0.70 | 0.70 | 0.73 | 0.77 | 0.87 | 1.49 | 1.42 | 1.33 | 1.10 | 0.74 | 0.66 | 0.61 | 0.74 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Debt to Equity, Competitors2 | |||||||||||||||||||||||||
| Chevron Corp. | 0.12 | 0.14 | 0.15 | 0.15 | 0.15 | 0.17 | 0.20 | 0.23 | 0.27 | 0.32 | 0.34 | — | — | — | — | — | — | — | — | ||||||
| ConocoPhillips | 0.40 | 0.35 | 0.35 | 0.35 | 0.35 | 0.34 | 0.38 | 0.44 | 0.45 | 0.45 | 0.46 | — | — | — | — | — | — | — | — | ||||||
| Exxon Mobil Corp. | 0.21 | 0.21 | 0.21 | 0.21 | 0.24 | 0.26 | 0.28 | 0.28 | 0.35 | 0.38 | 0.40 | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q3 2023 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity attributable to Devon
= 6,162 ÷ 11,639 = 0.53
2 Click competitor name to see calculations.
The financial data reveals several noteworthy trends in the company’s capital structure over the analyzed periods. Total debt levels remained relatively stable from early 2019 through mid-2020, fluctuating slightly around the 4,294 to 4,298 million USD range. However, starting in early 2021, there is a marked increase in total debt, peaking around 7,268 million USD in March 2021, before gradually declining to approximately 6,162 million USD by September 2023.
Concurrently, stockholders’ equity showed a declining trajectory in 2019 and the first half of 2020, falling from 7,857 million USD at the start of 2019 to around 2,885 million USD by the end of 2020. Beginning in early 2021, equity demonstrates a robust recovery and growth, rising from 8,353 million USD in March 2021 to 11,639 million USD by September 2023.
The debt to equity ratio captures the shifting balance between these two components of the company’s financial leverage. Initially, the ratio decreased from 0.74 in March 2019 to a low of 0.61 mid-2019, before climbing significantly to a peak of 1.49 by the end of 2020, reflecting the period’s increased reliance on debt relative to equity. Subsequently, the ratio declined steadily from 0.87 in early 2021 to 0.53 by September 2023, indicating a strengthening equity base and reduced leverage.
- Total Debt
- Stable in 2019 and early 2020, with a significant increase in early 2021 followed by a gradual decrease through 2023.
- Stockholders’ Equity
- Declined considerably through 2019 and 2020, then recovered strongly starting in 2021, reaching record highs by late 2022 and mid-2023.
- Debt to Equity Ratio
- Declined initially, then sharply increased to peak in late 2020, before steadily declining to its lowest point among the analyzed periods by 2023.
Overall, these trends suggest a period of financial stress or deleveraging in 2019 and 2020, with increased debt levels relative to equity culminating in a heightened leverage ratio at the end of 2020. The subsequent period reflects a strategic effort to strengthen the equity base and reduce relative debt, improving the company’s financial stability and lowering leverage risk from 2021 onwards.
Debt to Capital
Devon Energy Corp., debt to capital calculation (quarterly data)
| 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Short-term debt | 487) | 244) | 247) | 251) | 255) | —) | —) | —) | —) | —) | 226) | —) | —) | —) | —) | —) | —) | —) | —) | ||||||
| Long-term debt | 5,675) | 6,169) | 6,175) | 6,189) | 6,196) | 6,461) | 6,471) | 6,482) | 6,492) | 6,502) | 7,042) | 4,298) | 4,297) | 4,296) | 4,295) | 4,294) | 4,295) | 4,294) | 5,786) | ||||||
| Total debt | 6,162) | 6,413) | 6,422) | 6,440) | 6,451) | 6,461) | 6,471) | 6,482) | 6,492) | 6,502) | 7,268) | 4,298) | 4,297) | 4,296) | 4,295) | 4,294) | 4,295) | 4,294) | 5,786) | ||||||
| Stockholders’ equity attributable to Devon | 11,639) | 11,021) | 10,977) | 11,167) | 10,873) | 10,090) | 9,300) | 9,262) | 8,924) | 8,399) | 8,353) | 2,885) | 3,023) | 3,227) | 3,919) | 5,802) | 6,542) | 6,994) | 7,857) | ||||||
| Total capital | 17,801) | 17,434) | 17,399) | 17,607) | 17,324) | 16,551) | 15,771) | 15,744) | 15,416) | 14,901) | 15,621) | 7,183) | 7,320) | 7,523) | 8,214) | 10,096) | 10,837) | 11,288) | 13,643) | ||||||
| Solvency Ratio | |||||||||||||||||||||||||
| Debt to capital1 | 0.35 | 0.37 | 0.37 | 0.37 | 0.37 | 0.39 | 0.41 | 0.41 | 0.42 | 0.44 | 0.47 | 0.60 | 0.59 | 0.57 | 0.52 | 0.43 | 0.40 | 0.38 | 0.42 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Debt to Capital, Competitors2 | |||||||||||||||||||||||||
| Chevron Corp. | 0.11 | 0.12 | 0.13 | 0.13 | 0.13 | 0.15 | 0.17 | 0.18 | 0.22 | 0.24 | 0.26 | — | — | — | — | — | — | — | — | ||||||
| ConocoPhillips | 0.29 | 0.26 | 0.26 | 0.26 | 0.26 | 0.25 | 0.28 | 0.31 | 0.31 | 0.31 | 0.32 | — | — | — | — | — | — | — | — | ||||||
| Exxon Mobil Corp. | 0.17 | 0.17 | 0.17 | 0.17 | 0.20 | 0.21 | 0.22 | 0.22 | 0.26 | 0.28 | 0.29 | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q3 2023 Calculation
Debt to capital = Total debt ÷ Total capital
= 6,162 ÷ 17,801 = 0.35
2 Click competitor name to see calculations.
- Total Debt
- The total debt exhibited a significant decline from March 2019, starting at $5,786 million and decreasing to approximately $4,294 million by the end of 2019. This reduction stabilized through 2020, maintaining around $4,297 million. A notable increase occurred in the first quarter of 2021, where total debt surged to $7,268 million, followed by a gradual decrease over subsequent quarters, reaching $6,162 million by September 2023. Overall, the trend shows a sharp decrease initially, a substantial increase in early 2021, and a moderated decline thereafter.
- Total Capital
- Total capital followed a downward trajectory from $13,643 million in March 2019 to a low of $7,183 million by December 2020. From 2021 onwards, total capital experienced a strong recovery and growth phase, peaking at $17,607 million in December 2022, with minor fluctuations thereafter but maintaining levels above $17,000 million into late 2023. This indicates robust capital expansion following a period of contraction through 2019 and 2020.
- Debt to Capital Ratio
- The debt to capital ratio started at 0.42 in March 2019 and decreased to 0.38 by mid-2019, then rose steadily to a peak of 0.60 at the end of 2020, signifying increasing leverage. In 2021, the ratio declined consistently from 0.47 to 0.41 by year-end, continuing its downward trend through 2022 and into 2023, eventually reaching 0.35 by September 2023. This downward movement suggests an improvement in the company's capital structure, reflecting reduced reliance on debt relative to total capital over the recent periods.
Debt to Assets
Devon Energy Corp., debt to assets calculation (quarterly data)
| Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Short-term debt | 487) | 244) | 247) | 251) | 255) | —) | —) | —) | —) | —) | 226) | —) | —) | —) | —) | —) | —) | —) | —) | ||||||
| Long-term debt | 5,675) | 6,169) | 6,175) | 6,189) | 6,196) | 6,461) | 6,471) | 6,482) | 6,492) | 6,502) | 7,042) | 4,298) | 4,297) | 4,296) | 4,295) | 4,294) | 4,295) | 4,294) | 5,786) | ||||||
| Total debt | 6,162) | 6,413) | 6,422) | 6,440) | 6,451) | 6,461) | 6,471) | 6,482) | 6,492) | 6,502) | 7,268) | 4,298) | 4,297) | 4,296) | 4,295) | 4,294) | 4,295) | 4,294) | 5,786) | ||||||
| Total assets | 24,241) | 23,355) | 23,420) | 23,721) | 23,557) | 23,194) | 21,778) | 21,025) | 21,057) | 20,065) | 20,457) | 9,912) | 10,326) | 10,357) | 11,144) | 13,717) | 14,394) | 16,649) | 18,077) | ||||||
| Solvency Ratio | |||||||||||||||||||||||||
| Debt to assets1 | 0.25 | 0.27 | 0.27 | 0.27 | 0.27 | 0.28 | 0.30 | 0.31 | 0.31 | 0.32 | 0.36 | 0.43 | 0.42 | 0.41 | 0.39 | 0.31 | 0.30 | 0.26 | 0.32 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Debt to Assets, Competitors2 | |||||||||||||||||||||||||
| Chevron Corp. | 0.08 | 0.09 | 0.09 | 0.09 | 0.09 | 0.10 | 0.12 | 0.13 | 0.16 | 0.18 | 0.19 | — | — | — | — | — | — | — | — | ||||||
| ConocoPhillips | 0.20 | 0.18 | 0.18 | 0.18 | 0.18 | 0.18 | 0.20 | 0.22 | 0.23 | 0.23 | 0.24 | — | — | — | — | — | — | — | — | ||||||
| Exxon Mobil Corp. | 0.11 | 0.11 | 0.11 | 0.11 | 0.12 | 0.13 | 0.13 | 0.14 | 0.17 | 0.18 | 0.19 | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q3 2023 Calculation
Debt to assets = Total debt ÷ Total assets
= 6,162 ÷ 24,241 = 0.25
2 Click competitor name to see calculations.
- Total Debt
- The total debt exhibits a notable volatility over the observed periods. Initially, there is a marked reduction in total debt from 5,786 million USD at the end of Q1 2019 to approximately 4,294 million USD by Q4 2019, indicating a significant deleveraging phase. This lower level is maintained through 2020 with minor fluctuations. However, starting in Q1 2021, total debt increases sharply to 7,268 million USD, reaching a peak, followed by a gradual and consistent decrease through the subsequent quarters, ending at 6,162 million USD in Q3 2023. The overall trend in the latter part of the dataset reflects a controlled reduction in leverage after a period of increased borrowing.
- Total Assets
- Total assets have experienced substantial variation throughout the examined timeframe. From Q1 2019 to Q4 2020, there is a steady decline from 18,077 million USD to 9,912 million USD, reflecting possible asset disposals, write-downs, or operational contractions. Beginning in Q1 2021, total assets show a strong rebound, rising consistently to reach 24,241 million USD by Q3 2023. This upward trend suggests asset growth, acquisitions, or revaluations, indicating an expansion or recovery phase in the asset base.
- Debt to Assets Ratio
- The debt to assets ratio follows a dynamic trend that aligns with the movements observed in total debt and total assets. Initially, it declines from 0.32 in Q1 2019 to a low of 0.26 by mid-2019, consistent with debt reduction and slower asset decline. It then increases to a peak of approximately 0.43 in Q4 2020, aligning with relatively stable debt combined with declining assets. Post Q4 2020, the ratio begins a downward trajectory, decreasing steadily to 0.25 by Q3 2023, suggesting that asset growth outpaces the reduction in debt, leading to a healthier leverage position.
- Overall Insights
- The financial data reveal a cycle of deleveraging during 2019, followed by increased borrowing in early 2021, and subsequently a period of both asset growth and debt reduction. The company appears to have strategically managed its capital structure to improve leverage ratios over time. Asset base recovery post-2020 indicates renewed investment or improved operational conditions, while the declining debt to assets ratio in recent quarters points to strengthened financial stability. This trend may reflect improved market conditions or successful management initiatives aimed at enhancing financial health.
Financial Leverage
Devon Energy Corp., financial leverage calculation (quarterly data)
| 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Total assets | 24,241) | 23,355) | 23,420) | 23,721) | 23,557) | 23,194) | 21,778) | 21,025) | 21,057) | 20,065) | 20,457) | 9,912) | 10,326) | 10,357) | 11,144) | 13,717) | 14,394) | 16,649) | 18,077) | ||||||
| Stockholders’ equity attributable to Devon | 11,639) | 11,021) | 10,977) | 11,167) | 10,873) | 10,090) | 9,300) | 9,262) | 8,924) | 8,399) | 8,353) | 2,885) | 3,023) | 3,227) | 3,919) | 5,802) | 6,542) | 6,994) | 7,857) | ||||||
| Solvency Ratio | |||||||||||||||||||||||||
| Financial leverage1 | 2.08 | 2.12 | 2.13 | 2.12 | 2.17 | 2.30 | 2.34 | 2.27 | 2.36 | 2.39 | 2.45 | 3.44 | 3.42 | 3.21 | 2.84 | 2.36 | 2.20 | 2.38 | 2.30 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Financial Leverage, Competitors2 | |||||||||||||||||||||||||
| Chevron Corp. | 1.60 | 1.59 | 1.60 | 1.62 | 1.64 | 1.68 | 1.70 | 1.72 | 1.77 | 1.82 | 1.83 | — | — | — | — | — | — | — | — | ||||||
| ConocoPhillips | 1.96 | 1.89 | 1.91 | 1.95 | 1.93 | 1.87 | 1.90 | 2.00 | 1.98 | 1.93 | 1.94 | — | — | — | — | — | — | — | — | ||||||
| Exxon Mobil Corp. | 1.86 | 1.82 | 1.86 | 1.89 | 1.99 | 2.07 | 2.10 | 2.01 | 2.10 | 2.13 | 2.13 | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q3 2023 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity attributable to Devon
= 24,241 ÷ 11,639 = 2.08
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several key trends regarding the company's assets, equity, and financial leverage over the observed periods.
- Total Assets
-
Total assets demonstrated a declining trend from March 2019 through December 2020, decreasing from approximately 18.1 billion USD to around 9.9 billion USD. This suggests a period of asset reduction or divestiture. Beginning in March 2021, total assets increased significantly, nearly doubling compared to the low point in December 2020, reaching above 24.2 billion USD by September 2023. This upward trend indicates a phase of asset growth or acquisition activities in recent periods.
- Stockholders’ Equity Attributable to Devon
-
Stockholders’ equity followed a similar pattern to total assets. It decreased substantially from 7.9 billion USD in March 2019 to a low of approximately 2.9 billion USD by December 2020, indicating a contraction in equity capital during that timeframe. From March 2021 onward, equity began to recover steadily, rising to over 11.6 billion USD by September 2023. This rebound suggests improvements in retained earnings, capital issuance, or other equity enhancements.
- Financial Leverage
-
Financial leverage, defined as the ratio of total assets to stockholders’ equity, reflects the company's use of debt financing relative to equity. The ratio increased from 2.3 in March 2019 to a peak of approximately 3.44 in December 2020, indicating higher leverage and potentially greater financial risk during that period. Following this peak, leverage steadily declined to around 2.08 by September 2023, signaling a reduction in reliance on debt financing or an increase in equity proportional to assets, thereby improving the company’s capital structure and possibly its financial stability.
In summary, the data depicts a contraction phase through 2020 with reduced assets and equity alongside elevated financial leverage, followed by a recovery and growth phase starting in early 2021 characterized by asset and equity expansion and decreasing leverage. These patterns may reflect strategic adjustments in capital management, investment, and financing decisions over the examined period.