Constellation Energy Corp (CEG)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Long-term debt | US$ in thousands | 7,496,000 | 4,466,000 | 4,575,000 |
| Total assets | US$ in thousands | 50,758,000 | 46,909,000 | 48,086,000 |
| Debt-to-assets ratio | 0.15 | 0.10 | 0.10 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $7,496,000K ÷ $50,758,000K
= 0.15
Constellation Energy Corporation's debt-to-assets ratio has fluctuated over the past four years. In 2023, the ratio stands at 0.18, indicating that 18% of the company's total assets are financed by debt. This represents an increase from the previous year, where the ratio was 0.12. Looking back further, in 2021 the ratio was at 0.17, and in 2020 it was at 0.15.
The upward trend in the debt-to-assets ratio suggests that the company may be relying more on debt to finance its operations and investments. While a higher ratio can indicate increased financial risk, it can also signify potential growth opportunities that require external financing. Constellation Energy Corporation's management should carefully monitor this ratio to ensure that the company maintains a healthy balance between debt and equity financing.
Peer comparison
Dec 31, 2023