The AES Corporation (AES)
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 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 2,488,000 | 2,779,000 | 2,492,000 | 2,362,000 | 2,437,000 | 3,409,000 | 2,995,000 | 3,044,000 | 2,798,000 | 3,482,000 | 3,265,000 | 3,377,000 | 2,634,000 | 2,004,000 | 2,462,000 | 2,539,000 | 2,996,000 | 3,140,000 | 3,208,000 | 3,234,000 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 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 been fluctuating over the past eight quarters, ranging from a low of 6.51 in Q3 2022 to a high of 10.80 in Q4 2023. The company's overall trend shows an increase in the ratio, indicating higher reliance on debt financing compared to equity.
The increasing trend in the debt-to-equity ratio may raise concerns about the company's financial leverage and ability to meet its debt obligations. A higher ratio suggests that a larger portion of AES Corp.'s assets is financed by debt, which can lead to higher financial risk, particularly in times of economic uncertainty or rising interest rates.
It is important for investors and stakeholders to closely monitor AES Corp.'s debt levels and overall capital structure to assess the company's financial health and stability. Additionally, the company may need to consider strategies to manage its debt levels effectively to maintain a healthy balance between debt and equity financing.