Constellation Energy Corp (CEG)
Financial leverage ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 52,926,000 | 51,834,000 | 51,340,000 | 52,014,000 | 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 | 48,010,000 | 45,821,000 | 47,326,000 | 48,094,000 | 47,372,000 | 47,003,000 | 47,882,000 |
| Total stockholders’ equity | US$ in thousands | 13,166,000 | 12,570,000 | 11,425,000 | 11,199,000 | 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 | 11,634,000 | 10,632,000 | 11,149,000 | 12,399,000 | 12,711,000 | 13,064,000 | 13,054,000 |
| Financial leverage ratio | 4.02 | 4.12 | 4.49 | 4.64 | 4.65 | 4.20 | 4.14 | 4.30 | 4.26 | 4.32 | 4.12 | 4.22 | 4.29 | 4.13 | 4.31 | 4.24 | 3.88 | 3.73 | 3.60 | 3.67 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $52,926,000K ÷ $13,166,000K
= 4.02
The financial leverage ratio of Constellation Energy Corp has shown a fluctuating trend over the reported periods. The ratio has gradually increased from 3.67 as of March 31, 2020, to 4.02 as of December 31, 2024. This indicates that the company's reliance on debt has been increasing over time relative to its equity.
The peak in the financial leverage ratio was observed on December 31, 2023, at 4.65, suggesting a higher proportion of debt in the company's capital structure compared to equity at that point. Subsequently, there was a slight decrease in the ratio by the end of March 31, 2024, to 4.64.
Overall, the trend indicates that Constellation Energy Corp has been gradually increasing its leverage, which could pose higher financial risks due to increased interest payments and debt obligations. It is essential for the company to carefully manage its debt levels to maintain a healthy balance between debt and equity in its capital structure.
Peer comparison
Dec 31, 2024