The AES Corporation (AES)
Debt-to-equity ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 2,488,000 | 2,437,000 | 2,798,000 | 2,634,000 | 2,996,000 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $2,488,000K
= 0.00
The debt-to-equity ratio of AES Corp. has shown a fluctuating trend over the past five years. In 2023, the ratio stood at 10.80, which indicates a significant increase compared to the previous year where it was at 9.64 in 2022. This suggests that the company has taken on more debt relative to its equity in the most recent year.
Looking further back, in 2021, the debt-to-equity ratio was at 6.68, showing a notable increase from 7.55 in 2020. The ratio then climbed to 6.73 in 2019. Overall, the trend indicates fluctuation in the company's debt and equity structure over the years, with varying levels of leverage being employed.
A high debt-to-equity ratio may signal that the company is relying more on debt financing, which can potentially pose greater financial risk due to increased interest payments and debt obligations. It is essential for investors and stakeholders to monitor this ratio closely to assess AES Corp.'s financial leverage and risk management strategy. Further analysis of the company's financial health and profitability would provide a more comprehensive understanding of its overall performance and sustainability.