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)
Apache Corp., solvency ratios (quarterly data)
Based on: 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31), 10-K (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-Q (reporting date: 2012-03-31), 10-K (reporting date: 2011-12-31), 10-Q (reporting date: 2011-09-30), 10-Q (reporting date: 2011-06-30), 10-Q (reporting date: 2011-03-31).
The financial data reveals distinct trends in the leverage ratios over the examined periods. The analysis focuses on four key ratios: Debt to Equity, Debt to Capital, Debt to Assets, and Financial Leverage.
- Debt to Equity Ratio
- This ratio exhibited a gradual decline from 0.32 in March 2011 to a low of 0.25 at the end of 2011, indicating a conservative capital structure early in the period. Subsequently, there was a consistent increase, reaching a moderate level around 0.39 in 2012 and early 2013. The ratio remained relatively steady through 2013 and 2014, fluctuating between 0.29 and 0.35. However, starting in 2015, the ratio surged sharply to a peak of 3.42 by December 2015, suggesting a significant rise in financial leverage or debt accumulation relative to equity. This was followed by a sharp decrease, stabilizing around 1.17 to 1.22 in the first half of 2016.
- Debt to Capital Ratio
- The trend for Debt to Capital followed a similar pattern to Debt to Equity, starting from a relatively low level of 0.24 in early 2011 and dipping slightly to about 0.20 at the end of 2011. Thereafter, it experienced a gradual increase reaching approximately 0.30 by the end of 2014. A marked escalation is evident in 2015, peaking at 0.77 in March, indicating that debt formed a significantly larger share of capital during this period. By mid-2016, the ratio reduced to roughly 0.54-0.55, showing some retrenchment but still elevated compared to earlier years.
- Debt to Assets Ratio
- This ratio showed a steady decline in the initial periods, moving down from 0.18 in March 2011 to around 0.14 at the end of the same year, reflecting lower reliance on debt relative to total assets. From 2012 through 2014, the ratio hovered around 0.20 to 0.16, showing moderate leverage. Yet, a sharp increase occurred starting in 2015, peaking at 0.47 by March 2016, demonstrating substantially higher financial risk through increased debt levels relative to total assets. A slight decrease was noticed by mid-2016, stabilizing near 0.35-0.36.
- Financial Leverage Ratio
- Financial leverage followed a broadly stable trajectory from 1.78 in early 2011 to about 1.80 by the end of the year, with gradual increments through 2012-2014, reaching near 2.16 by mid-2014. A dramatic surge is visible in 2015, peaking at an exceptionally high 7.34 in March 2016, reflecting a significant change in the company's capital structure, likely due to substantial debt financing or reduction in equity base. Following this peak, the ratio rapidly declined to approximately 3.32-3.41 in mid-2016, indicating some reversal or adjustment in leverage.
Overall, the data suggests a period of relatively conservative leverage from 2011 through 2014, followed by a sharp increase in all debt-related ratios starting in 2015, culminating in peaks during early 2016. This pattern points to heightened financial risk and increased dependence on debt financing during that later period, with indications of partial deleveraging or stabilization as of mid-2016.
Debt Ratios
Debt to Equity
Apache Corp., debt to equity calculation (quarterly data)
| Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | Dec 31, 2011 | Sep 30, 2011 | Jun 30, 2011 | Mar 31, 2011 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Current debt | —) | —) | 1) | —) | —) | 2,598) | —) | 20) | 1) | —) | 53) | 57) | 478) | 994) | 990) | 964) | 568) | 429) | 431) | 417) | 448) | 30) | |||||||
| Long-term debt, excluding current maturities | 8,719) | 8,718) | 8,777) | 8,777) | 9,676) | 9,675) | 11,245) | 10,902) | 9,674) | 9,673) | 9,672) | 10,868) | 12,297) | 11,485) | 11,355) | 10,670) | 9,670) | 7,444) | 6,785) | 6,785) | 7,404) | 8,130) | |||||||
| Total debt | 8,719) | 8,718) | 8,778) | 8,777) | 9,676) | 12,273) | 11,245) | 10,922) | 9,675) | 9,673) | 9,725) | 10,925) | 12,775) | 12,479) | 12,345) | 11,634) | 10,238) | 7,873) | 7,216) | 7,202) | 7,852) | 8,160) | |||||||
| Total Apache shareholders’ equity | 7,142) | 7,451) | 2,566) | 9,809) | 15,544) | 21,211) | 25,937) | 30,818) | 32,755) | 33,082) | 33,396) | 32,981) | 32,721) | 31,987) | 31,331) | 30,714) | 30,673) | 29,715) | 28,993) | 27,903) | 26,667) | 25,198) | |||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Debt to equity1 | 1.22 | 1.17 | 3.42 | 0.89 | 0.62 | 0.58 | 0.43 | 0.35 | 0.30 | 0.29 | 0.29 | 0.33 | 0.39 | 0.39 | 0.39 | 0.38 | 0.33 | 0.26 | 0.25 | 0.26 | 0.29 | 0.32 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Debt to Equity, Competitors2 | |||||||||||||||||||||||||||||
| Chevron Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| ConocoPhillips | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Exxon Mobil Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Occidental Petroleum Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31), 10-K (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-Q (reporting date: 2012-03-31), 10-K (reporting date: 2011-12-31), 10-Q (reporting date: 2011-09-30), 10-Q (reporting date: 2011-06-30), 10-Q (reporting date: 2011-03-31).
1 Q2 2016 Calculation
Debt to equity = Total debt ÷ Total Apache shareholders’ equity
= 8,719 ÷ 7,142 = 1.22
2 Click competitor name to see calculations.
The financial data reveals several key trends regarding the company’s leverage and equity position over the period from March 31, 2011, to June 30, 2016.
- Total Debt
- Total debt showed moderate fluctuations with an overall increasing tendency in the early years, rising from $8,160 million in March 2011 to a peak above $12,000 million in late 2012 and early 2013. Following this peak, the debt levels generally declined or stabilized around the $8,700 to $9,700 million range during 2014 and 2015. Towards the end of the period, debt levels remained stable near $8,700 million.
- Total Shareholders’ Equity
- Shareholders’ equity demonstrated a rising trend during the first half of the period, growing steadily from about $25,198 million in March 2011 to a peak near $33,396 million in December 2013. After this peak, a marked decline in equity is observed, dropping sharply to around $9,809 million by March 2015. The declining trend continued, with equity bottoming out at about $2,566 million in March 2016 before slightly recovering to approximately $7,142 million by June 2016.
- Debt to Equity Ratio
- The debt to equity ratio exhibited notable variation over the period reviewed. Initially, it declined from 0.32 in March 2011 to about 0.25 at the end of 2011, reflecting stronger equity growth relative to debt. From 2012 through 2014, the ratio remained relatively stable between 0.29 and 0.39, indicating balanced leverage. However, starting in 2015, the ratio surged dramatically, peaking at 3.42 in March 2016. This spike correlates with the sharp decline in shareholders’ equity combined with a relatively stable debt level. It suggests a significant deterioration in the company’s equity base and a substantial increase in financial leverage during that period. After the peak, the ratio decreased somewhat but remained elevated above 1.0 by mid-2016.
Overall, the data reflects a phase of increasing financial strength and equity growth through the early part of the period, followed by a period of financial stress indicated by falling equity and rising leverage ratios starting in 2015. The debt level remained fairly consistent or slightly declining during the latter years, implying that the worsening leverage was primarily driven by losses or reductions in shareholders’ equity rather than by increased borrowing. This pattern raises concerns about the company’s financial stability and risk profile during the final years of the data range.
Debt to Capital
Apache Corp., debt to capital calculation (quarterly data)
| Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | Dec 31, 2011 | Sep 30, 2011 | Jun 30, 2011 | Mar 31, 2011 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Current debt | —) | —) | 1) | —) | —) | 2,598) | —) | 20) | 1) | —) | 53) | 57) | 478) | 994) | 990) | 964) | 568) | 429) | 431) | 417) | 448) | 30) | |||||||
| Long-term debt, excluding current maturities | 8,719) | 8,718) | 8,777) | 8,777) | 9,676) | 9,675) | 11,245) | 10,902) | 9,674) | 9,673) | 9,672) | 10,868) | 12,297) | 11,485) | 11,355) | 10,670) | 9,670) | 7,444) | 6,785) | 6,785) | 7,404) | 8,130) | |||||||
| Total debt | 8,719) | 8,718) | 8,778) | 8,777) | 9,676) | 12,273) | 11,245) | 10,922) | 9,675) | 9,673) | 9,725) | 10,925) | 12,775) | 12,479) | 12,345) | 11,634) | 10,238) | 7,873) | 7,216) | 7,202) | 7,852) | 8,160) | |||||||
| Total Apache shareholders’ equity | 7,142) | 7,451) | 2,566) | 9,809) | 15,544) | 21,211) | 25,937) | 30,818) | 32,755) | 33,082) | 33,396) | 32,981) | 32,721) | 31,987) | 31,331) | 30,714) | 30,673) | 29,715) | 28,993) | 27,903) | 26,667) | 25,198) | |||||||
| Total capital | 15,861) | 16,169) | 11,344) | 18,586) | 25,220) | 33,484) | 37,182) | 41,740) | 42,430) | 42,755) | 43,121) | 43,906) | 45,496) | 44,466) | 43,676) | 42,348) | 40,911) | 37,588) | 36,209) | 35,105) | 34,519) | 33,358) | |||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Debt to capital1 | 0.55 | 0.54 | 0.77 | 0.47 | 0.38 | 0.37 | 0.30 | 0.26 | 0.23 | 0.23 | 0.23 | 0.25 | 0.28 | 0.28 | 0.28 | 0.27 | 0.25 | 0.21 | 0.20 | 0.21 | 0.23 | 0.24 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Debt to Capital, Competitors2 | |||||||||||||||||||||||||||||
| Chevron Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| ConocoPhillips | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Exxon Mobil Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Occidental Petroleum Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31), 10-K (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-Q (reporting date: 2012-03-31), 10-K (reporting date: 2011-12-31), 10-Q (reporting date: 2011-09-30), 10-Q (reporting date: 2011-06-30), 10-Q (reporting date: 2011-03-31).
1 Q2 2016 Calculation
Debt to capital = Total debt ÷ Total capital
= 8,719 ÷ 15,861 = 0.55
2 Click competitor name to see calculations.
The data indicates the financial leverage and capital structure trends over a period of approximately five years. Total debt and total capital amounts provide the basis for analyzing the debt-to-capital ratio.
- Total Debt
- Total debt showed fluctuations over time. It started at 8,160 million US dollars in March 2011, initially declining slightly to 7,202 million by September 2011. Thereafter, it generally increased, peaking at 12,345 million in December 2012. From 2013 through 2014, total debt fluctuated moderately but remained mostly stable around 9,600 to 11,200 million. In 2015, debt peaked again above 12,000 million in March but declined steadily afterward, reaching approximately 8,700 million by mid-2016.
- Total Capital
- Total capital steadily rose from 33,358 million in March 2011 to a peak near 45,496 million in June 2013. From that point onward, capital decreased sharply, dropping to 25,220 million by March 2015 and hitting a low of about 11,344 million in December 2015. Some recovery occurred by mid-2016, with capital slightly increasing to around 15,861 million.
- Debt-to-Capital Ratio
- The debt-to-capital ratio followed a dynamic pattern influenced by the above movements. It started low at 0.24 in March 2011, reduced to 0.20 by December 2011, indicating relatively low leverage initially. This ratio gradually increased to about 0.28 in late 2012, demonstrating a moderate rise in leverage. Through 2013 and 2014, the ratio maintained a stable range around 0.23 to 0.26. However, beginning in 2015, the ratio rose sharply, reaching a maximum of 0.77 in March 2016, reflecting significant leverage amid declining capital. Slight moderation occurred afterward but remained high around 0.54 to 0.55 by mid-2016.
In summary, the data reveals a period of increasing capital and relatively moderate leverage until mid-2013, followed by a period of capital contraction and heightened leverage ratios, peaking in early 2016. The elevated debt-to-capital ratios during 2015 and 2016 indicate a more leveraged capital structure and potentially higher financial risk during that period. The slight recovery in capital toward mid-2016 suggests a potential stabilization phase, although leverage remained elevated.
Debt to Assets
Apache Corp., debt to assets calculation (quarterly data)
| Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | Dec 31, 2011 | Sep 30, 2011 | Jun 30, 2011 | Mar 31, 2011 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Current debt | —) | —) | 1) | —) | —) | 2,598) | —) | 20) | 1) | —) | 53) | 57) | 478) | 994) | 990) | 964) | 568) | 429) | 431) | 417) | 448) | 30) | |||||||
| Long-term debt, excluding current maturities | 8,719) | 8,718) | 8,777) | 8,777) | 9,676) | 9,675) | 11,245) | 10,902) | 9,674) | 9,673) | 9,672) | 10,868) | 12,297) | 11,485) | 11,355) | 10,670) | 9,670) | 7,444) | 6,785) | 6,785) | 7,404) | 8,130) | |||||||
| Total debt | 8,719) | 8,718) | 8,778) | 8,777) | 9,676) | 12,273) | 11,245) | 10,922) | 9,675) | 9,673) | 9,725) | 10,925) | 12,775) | 12,479) | 12,345) | 11,634) | 10,238) | 7,873) | 7,216) | 7,202) | 7,852) | 8,160) | |||||||
| Total assets | 24,346) | 24,734) | 18,842) | 27,812) | 35,312) | 48,650) | 55,952) | 60,990) | 61,171) | 61,121) | 61,637) | 60,239) | 63,350) | 61,792) | 60,737) | 58,810) | 57,217) | 53,237) | 52,051) | 47,482) | 46,529) | 44,866) | |||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Debt to assets1 | 0.36 | 0.35 | 0.47 | 0.32 | 0.27 | 0.25 | 0.20 | 0.18 | 0.16 | 0.16 | 0.16 | 0.18 | 0.20 | 0.20 | 0.20 | 0.20 | 0.18 | 0.15 | 0.14 | 0.15 | 0.17 | 0.18 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Debt to Assets, Competitors2 | |||||||||||||||||||||||||||||
| Chevron Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| ConocoPhillips | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Exxon Mobil Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Occidental Petroleum Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31), 10-K (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-Q (reporting date: 2012-03-31), 10-K (reporting date: 2011-12-31), 10-Q (reporting date: 2011-09-30), 10-Q (reporting date: 2011-06-30), 10-Q (reporting date: 2011-03-31).
1 Q2 2016 Calculation
Debt to assets = Total debt ÷ Total assets
= 8,719 ÷ 24,346 = 0.36
2 Click competitor name to see calculations.
The financial data indicates evolving trends in debt, assets, and leverage for the company over the period examined.
- Total Debt
- Total debt shows an initial downward movement from 8,160 million US dollars at the start of the period to a low of around 7,200 million by the end of 2011. Subsequently, debt levels increase significantly, peaking at over 12,000 million by the end of 2012, followed by fluctuations with a slight decline towards the end of the period, ending at approximately 8,700 million. The mid-period spike suggests a phase of increased borrowing or capital expenditure before debt stabilization and partial reduction in later quarters.
- Total Assets
- Total assets generally trend upwards from about 44,866 million in early 2011 to a peak of over 63,000 million in mid-2013, indicating asset growth possibly through investments or acquisitions during this phase. However, from late 2013 onwards, there is a significant and steady decrease in asset value, dropping sharply to levels around 18,842 million by the end of 2015 before a modest recovery to around 24,300 million by mid-2016. This decline might reflect asset sales, impairments, or market value adjustments.
- Debt to Assets Ratio
- The debt to assets ratio initially falls from 0.18 to a low of 0.14 by the end of 2011, reflecting a favorable deleveraging as assets grew and debt decreased. Thereafter, the ratio increases steadily, peaking at 0.47 in the first quarter of 2016, indicating a significant rise in leverage. Despite some reduction afterwards, the ratio remains elevated around 0.35-0.36, which signals a heightened risk profile and dependency on debt financing relative to asset base compared to the beginning of the period.
Overall, the period is characterized by an early phase of deleveraging with asset growth, succeeded by a period of increasing indebtedness concurrent with notable asset contraction, leading to a materially higher leverage position by mid-2016. This evolution suggests shifts in financial strategy or responses to market conditions that have increased financial risk exposure.
Financial Leverage
Apache Corp., financial leverage calculation (quarterly data)
| Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | Dec 31, 2011 | Sep 30, 2011 | Jun 30, 2011 | Mar 31, 2011 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Total assets | 24,346) | 24,734) | 18,842) | 27,812) | 35,312) | 48,650) | 55,952) | 60,990) | 61,171) | 61,121) | 61,637) | 60,239) | 63,350) | 61,792) | 60,737) | 58,810) | 57,217) | 53,237) | 52,051) | 47,482) | 46,529) | 44,866) | |||||||
| Total Apache shareholders’ equity | 7,142) | 7,451) | 2,566) | 9,809) | 15,544) | 21,211) | 25,937) | 30,818) | 32,755) | 33,082) | 33,396) | 32,981) | 32,721) | 31,987) | 31,331) | 30,714) | 30,673) | 29,715) | 28,993) | 27,903) | 26,667) | 25,198) | |||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Financial leverage1 | 3.41 | 3.32 | 7.34 | 2.84 | 2.27 | 2.29 | 2.16 | 1.98 | 1.87 | 1.85 | 1.85 | 1.83 | 1.94 | 1.93 | 1.94 | 1.91 | 1.87 | 1.79 | 1.80 | 1.70 | 1.74 | 1.78 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Financial Leverage, Competitors2 | |||||||||||||||||||||||||||||
| Chevron Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| ConocoPhillips | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Exxon Mobil Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Occidental Petroleum Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31), 10-K (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-Q (reporting date: 2012-03-31), 10-K (reporting date: 2011-12-31), 10-Q (reporting date: 2011-09-30), 10-Q (reporting date: 2011-06-30), 10-Q (reporting date: 2011-03-31).
1 Q2 2016 Calculation
Financial leverage = Total assets ÷ Total Apache shareholders’ equity
= 24,346 ÷ 7,142 = 3.41
2 Click competitor name to see calculations.
- Total Assets
-
Total assets showed an overall increasing trend from March 31, 2011, to December 31, 2014, rising from approximately $44.9 billion to about $61.0 billion. However, beginning in 2015, total assets exhibited a significant decline, dropping sharply from $59.0 billion at the end of 2014 to $18.8 billion by December 31, 2015. The downward trend continued into mid-2016, with assets stabilizing around $24.3 billion by June 30, 2016.
- Total Apache Shareholders’ Equity
-
Shareholders’ equity increased steadily from $25.2 billion at the end of Q1 2011 to a peak of approximately $33.4 billion at year-end 2013. Subsequently, equity began declining gradually through 2014 and then more precipitously from 2015 onwards. By March 31, 2016, equity had reduced to a low of $2.6 billion, before partially recovering to approximately $7.1 billion by June 30, 2016. This pattern mirrors the decline observed in total assets during the same period.
- Financial Leverage
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The financial leverage ratio remained relatively stable between 1.7 and 1.9 through the period from Q1 2011 to late 2014, indicating modest use of debt relative to equity. Starting in 2015, the ratio increased substantially, reaching a peak of 7.34 by March 31, 2016, signifying a sharp rise in leverage possibly due to shrinking equity and/or increasing liabilities. By mid-2016, the leverage ratio moderated somewhat to around 3.3, though it remained elevated compared to previous years.
- Summary of Trends
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The data reflect a period of growth in asset base and equity through 2013-2014, followed by a marked contraction in both measures in 2015 and early 2016. The sharp decline in equity relative to assets led to a significantly increased financial leverage ratio in 2015 and 2016, indicating higher financial risk exposure. The partial recovery of equity and moderation of leverage by mid-2016 suggests some stabilization after a period of financial distress or restructuring.