Ameren Corp (AEE)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 11,349,000 | 10,508,000 | 9,700,000 | 8,938,000 | 8,059,000 |
| Debt-to-capital ratio | 0.57 | 0.57 | 0.56 | 0.55 | 0.53 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $15,121,000K ÷ ($15,121,000K + $11,349,000K)
= 0.57
Ameren Corp.'s debt-to-capital ratio has shown a consistent upward trend over the five-year period from 2019 to 2023. The ratio increased from 0.55 in 2019 to 0.59 in both 2022 and 2023, with a slight dip to 0.58 in 2021. This indicates that the company's reliance on debt to finance its operations and investments has been gradually increasing.
A debt-to-capital ratio of 0.59 in 2023 implies that 59% of Ameren's capital structure is financed by debt, while the remaining 41% is funded by equity. This level of leverage suggests that the company has a moderate amount of debt relative to its total capitalization.
It is important for investors and stakeholders to monitor Ameren's debt-to-capital ratio closely to ensure that the company maintains a sustainable capital structure and does not become overly leveraged. A higher debt-to-capital ratio can indicate increased financial risk, as the company may have higher interest payments and be more vulnerable to economic downturns. It is advisable for the company to carefully manage its debt levels to maintain a healthy balance between debt and equity financing.
Peer comparison
Dec 31, 2023