Ameren Corp (AEE)

Debt-to-assets ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	15,121,000	13,685,000	12,562,000	11,078,000	8,915,000
Total assets	US$ in thousands	40,830,000	37,904,000	35,735,000	32,030,000	28,933,000
Debt-to-assets ratio		0.37	0.36	0.35	0.35	0.31

December 31, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $15,121,000K ÷ $40,830,000K
= 0.37

Ameren Corp.'s debt-to-assets ratio has been steadily increasing over the past five years, from 0.34 in 2019 to 0.40 in 2023. This ratio indicates the proportion of the company's assets that are financed through debt.

The increasing trend in the debt-to-assets ratio suggests that Ameren Corp. has been relying more on debt to finance its operations and investments over the years. This may be a strategy to take advantage of favorable interest rates or to fund growth opportunities without diluting existing shareholders' ownership.

While a higher debt-to-assets ratio may indicate higher financial risk due to the increased leverage, it can also potentially result in higher returns on equity if the company is able to generate higher returns from the assets funded by debt.

It would be important for stakeholders, including investors and creditors, to closely monitor Ameren Corp.'s debt levels and evaluate its ability to manage and service its debt obligations to ensure the company's long-term financial stability and sustainability.