Constellation Energy Corp (CEG)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 4.02 | 4.65 | 4.26 | 4.29 | 3.88 |
Constellation Energy Corp has consistently maintained a strong solvency position as indicated by its low debt-to-assets, debt-to-capital, and debt-to-equity ratios of 0.00 across the years 2020 to 2024. This suggests that the company's assets are predominantly financed through equity rather than debt, signifying a low level of financial risk.
Furthermore, the financial leverage ratio, which measures the overall debt level of a company in relation to its equity, has shown some fluctuations but has generally remained within a manageable range. The ratio increased from 3.88 in 2020 to 4.65 in 2023 but decreased to 4.02 by the end of 2024. This indicates that while the company's debt levels have slightly increased over the years, they are still within reasonable limits compared to its equity.
Overall, Constellation Energy Corp's solvency ratios reflect a financially stable and well-capitalized company with a conservative approach to debt management, which bodes well for its long-term financial health and sustainability.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 7.94 | 4.03 | -1.16 | 1.51 | 3.34 |
The interest coverage of Constellation Energy Corp has fluctuated over the past few years. In December 31, 2020, the interest coverage ratio was 3.34, indicating that the company's operating income was sufficient to cover its interest expenses. However, by December 31, 2021, this ratio declined to 1.51, suggesting a potential strain on the company's ability to meet its interest obligations.
The situation worsened significantly by December 31, 2022, with an interest coverage ratio of -1.16, implying that the company's operating income was insufficient to cover its interest payments, raising concerns about its financial health and solvency.
However, Constellation Energy Corp managed to improve its position in the following years. By December 31, 2023, the interest coverage ratio increased to 4.03, indicating a recovery in the company's ability to meet its interest obligations. Subsequently, by December 31, 2024, the ratio rose substantially to 7.94, demonstrating a much stronger ability to cover interest expenses and potentially reflecting improved profitability or lower interest costs.
Overall, the trend in Constellation Energy Corp's interest coverage ratios shows volatility and shifts in the company's financial performance and ability to manage its debt obligations over the specified period.