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	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021
Long-term debt	US$ in thousands	7,496,000	7,512,000	6,156,000	5,763,000	4,466,000	4,480,000	4,507,000	4,548,000	4,575,000
Total stockholders’ equity	US$ in thousands	10,925,000	11,666,000	11,256,000	10,728,000	11,018,000	10,803,000	11,000,000	11,105,000	11,219,000
Debt-to-capital ratio		0.41	0.39	0.35	0.35	0.29	0.29	0.29	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.