The AES Corporation (AES)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 44,799,000 | 43,161,000 | 41,505,000 | 39,357,000 | 38,363,000 | 37,775,000 | 36,070,000 | 34,648,000 | 32,963,000 | 35,030,000 | 34,727,000 | 35,203,000 | 34,603,000 | 34,267,000 | 34,566,000 | 34,142,000 | 33,648,000 | 33,423,000 | 33,238,000 | 33,471,000 |
| 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 |
| Financial leverage ratio | 18.01 | 15.53 | 16.66 | 16.66 | 15.74 | 11.08 | 12.04 | 11.38 | 11.78 | 10.06 | 10.64 | 10.42 | 13.14 | 17.10 | 14.04 | 13.45 | 11.23 | 10.64 | 10.36 | 10.35 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $44,799,000K ÷ $2,488,000K
= 18.01
The financial leverage ratio of AES Corp. has shown fluctuations over the past eight quarters, ranging from 11.08 to 18.01. The ratio measures the company's reliance on debt financing versus equity financing.
In Q4 2023, the financial leverage ratio increased to 18.01, indicating a higher level of debt relative to equity compared to the previous quarter. This could suggest a more aggressive capital structure or increased risk due to higher debt levels.
In Q3 and Q4 of 2022, the financial leverage ratio experienced significant increases, reaching 15.74 and 16.66 respectively. This uptrend suggests a shift towards more debt financing during this period.
Conversely, in Q2 and Q3 of 2022, the ratio was comparatively lower at 12.04 and 11.08, indicating a lower reliance on debt financing and a more conservative capital structure during those quarters.
Overall, the fluctuation in the financial leverage ratio of AES Corp. over the past eight quarters reflects changes in the company's financing strategy and its risk profile. Investors and stakeholders may need to closely monitor these trends to assess the company's financial health and sustainability.