Constellation Energy Corp (CEG)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 52,926,000 | 50,758,000 | 46,909,000 | 48,086,000 | 48,094,000 |
| Total stockholders’ equity | US$ in thousands | 13,166,000 | 10,925,000 | 11,018,000 | 11,219,000 | 12,399,000 |
| Financial leverage ratio | 4.02 | 4.65 | 4.26 | 4.29 | 3.88 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $52,926,000K ÷ $13,166,000K
= 4.02
Constellation Energy Corp's financial leverage ratio has exhibited varying trends over the years. The ratio increased from 3.88 at the end of December 31, 2020, to 4.29 at the end of December 31, 2021, indicating an increase in the company's reliance on debt financing relative to equity. This trend continued through 2022 and 2023, where the financial leverage ratio hovered around 4.26 to 4.65, suggesting a sustained high level of debt usage.
However, by the end of December 31, 2024, the financial leverage ratio dropped to 4.02, potentially signaling a slight decrease in the company's debt relative to equity. Overall, the increasing trend in the financial leverage ratio up to 2023 might indicate that Constellation Energy Corp has been leveraging more debt to finance its operations and investments. The subsequent decline in 2024 could suggest a shift towards a more balanced debt-to-equity structure or a reduction in debt levels. It would be important to monitor this ratio in the future to assess the company's capital structure and financial risk profile.
Peer comparison
Dec 31, 2024