Constellation Energy Corp (CEG)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 10,925,000 | 11,018,000 | 11,219,000 |
| Debt-to-capital ratio | 0.41 | 0.29 | 0.29 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $7,496,000K ÷ ($7,496,000K + $10,925,000K)
= 0.41
The debt-to-capital ratio of Constellation Energy Corporation has shown fluctuations over the past four years. In 2020, the ratio was 0.37, indicating that debt comprised 37% of the company's capital structure. There was an increase in 2021 to 0.42, before dropping to 0.34 in 2022. The ratio increased again in 2023 to 0.46, signifying that debt represented 46% of the company's capital in that year. This upward trend suggests a higher reliance on debt financing compared to equity financing, which could potentially increase financial risk and interest payment obligations for the company. Further analysis of the reasons behind these changes and their potential impact on the company's financial health would be beneficial.
Peer comparison
Dec 31, 2023