Constellation Energy Corp (CEG)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 50,758,000 | 48,965,000 | 46,559,000 | 46,158,000 | 46,909,000 | 46,616,000 | 45,333,000 | 46,846,000 | 48,086,000 |
| 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 |
| Financial leverage ratio | 4.65 | 4.20 | 4.14 | 4.30 | 4.26 | 4.32 | 4.12 | 4.22 | 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 of Constellation Energy Corporation has shown slight fluctuations over the past five quarters. It increased from 4.26 in Q4 2022 to 4.65 in Q4 2023, indicating an increase in the company's reliance on debt to finance its operations. Subsequently, there was a decline in Q3 2023 to 4.20, followed by a slight increase in Q2 2023 to 4.14, and then a small uptick in Q1 2023 to 4.30.
Overall, the trend suggests that the company's financial leverage ratio has been relatively high, hovering above 4 in each quarter, indicating that a significant portion of Constellation Energy Corporation's assets are financed through debt. Investors and creditors may view this as a risk factor, as high financial leverage ratios can potentially lead to financial instability during economic downturns or periods of high interest rates. It would be prudent for stakeholders to closely monitor the company's debt levels and repayment capacity to ensure the sustainability of its financial structure.
Peer comparison
Dec 31, 2023