Ameren Corp (AEE)
Debt-to-equity ratio
| Dec 31, 2023 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 15,121,000 | 13,829,000 | 14,328,000 | 14,181,000 | 13,685,000 | 13,577,000 | 12,985,000 | 12,563,000 | 12,562,000 | 12,444,000 | 12,492,000 | 11,527,000 | 11,078,000 | 10,172,000 | 10,171,000 | 9,378,000 | 8,915,000 | 8,651,000 | 8,222,000 | 8,221,000 |
| Total stockholders’ equity | US$ in thousands | 11,349,000 | 11,043,000 | 10,697,000 | 10,607,000 | 10,508,000 | 10,201,000 | 9,880,000 | 9,806,000 | 9,700,000 | 9,685,000 | 9,353,000 | 9,148,000 | 8,938,000 | 8,489,000 | 8,227,000 | 8,085,000 | 8,059,000 | 8,062,000 | 7,791,000 | 7,705,000 |
| Debt-to-equity ratio | 1.33 | 1.25 | 1.34 | 1.34 | 1.30 | 1.33 | 1.31 | 1.28 | 1.30 | 1.28 | 1.34 | 1.26 | 1.24 | 1.20 | 1.24 | 1.16 | 1.11 | 1.07 | 1.06 | 1.07 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $15,121,000K ÷ $11,349,000K
= 1.33
The debt-to-equity ratio of Ameren Corp. has been relatively stable over the past eight quarters, ranging between 1.44 and 1.50. This indicates that the company has been consistently maintaining a higher level of debt in relation to its equity. A higher debt-to-equity ratio suggests that Ameren relies more on debt financing to fund its operations and growth opportunities compared to equity financing.
The slight fluctuations in the ratio from quarter to quarter suggest that Ameren's capital structure may have experienced some variability in the mix of debt and equity over time. Generally, a lower debt-to-equity ratio is considered more favorable as it indicates lower financial risk and potentially better investment quality. On the other hand, a higher ratio may indicate higher financial risk and leverage.
Overall, Ameren's debt-to-equity ratio shows a moderate level of leverage, which may be a strategic decision reflecting the company's need for debt to support its operations and investments. It is important for investors and stakeholders to monitor this ratio over time to assess the company's financial health and risk level associated with its capital structure.
Peer comparison
Dec 31, 2023