Trends in Anadarko’s leverage
Anadarko Petroleum’s (APC) total debt has fallen considerably. Whereas it was $18.7 billion in 1Q16, it was ~$15.3 billion in 1Q17—a decline of ~22%.
Anadarko’s total debt-to-equity ratio also fell, from ~160% in 1Q16 to ~129% in 1Q17. A higher debt-to-equity ratio usually indicates that a company has been aggressively financing its growth through debt. However, a decline in Anadarko’s debt-to-equity ratio could be seen as a positive sign by its investors.