Constellation Energy Corp (CEG)
Debt-to-capital ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | ||
|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 7,496,000 | 7,512,000 | 6,156,000 | 5,763,000 | 4,466,000 | 4,480,000 |
| Total stockholders’ equity | US$ in thousands | 10,925,000 | 11,666,000 | 11,256,000 | 10,728,000 | 11,018,000 | 10,803,000 |
| Debt-to-capital ratio | 0.41 | 0.39 | 0.35 | 0.35 | 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 a generally increasing trend over the past five quarters, rising from 0.34 in Q4 2022 to 0.46 in Q4 2023. This indicates that the company has been relying more on debt to finance its operations and investments compared to its capital base.
A debt-to-capital ratio of 0.46 in Q4 2023 implies that approximately 46% of Constellation Energy Corporation's capital structure is composed of debt, while the remaining 54% is contributed by shareholders' equity. This suggests a moderate level of financial leverage in the company's capital structure.
It is important to note that the increasing trend in the debt-to-capital ratio may indicate a potential increase in financial risk for the company, as higher levels of debt could lead to higher interest expenses and potential liquidity challenges. Investors and stakeholders should closely monitor this ratio to assess the company's ability to meet its debt obligations and manage its overall financial health.
Peer comparison
Dec 31, 2023