Constellation Energy Corp (CEG)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Total assets | US$ in thousands | 50,758,000 | 46,909,000 | 48,086,000 |
| Total stockholders’ equity | US$ in thousands | 10,925,000 | 11,018,000 | 11,219,000 |
| Financial leverage ratio | 4.65 | 4.26 | 4.29 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $50,758,000K ÷ $10,925,000K
= 4.65
The financial leverage ratio for Constellation Energy Corporation has shown a consistent upward trend over the past four years. The ratio increased from 3.88 in 2020 to 4.65 in 2023. This indicates that the company has been relying more on debt to finance its operations and investments. Higher financial leverage ratios suggest that a larger portion of the company's assets is funded through debt rather than equity, which can increase the company's financial risk and cost of capital. It is essential for investors and stakeholders to closely monitor the company's financial leverage ratio to assess its ability to meet its debt obligations and manage financial risk effectively.
Peer comparison
Dec 31, 2023