Constellation Energy Corp (CEG)
Solvency ratios
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | ||||
|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.15 | 0.15 | 0.13 | 0.12 | 0.10 | 0.10 | 0.10 | 0.10 | 0.10 |
| Debt-to-capital ratio | 0.41 | 0.39 | 0.35 | 0.35 | 0.29 | 0.29 | 0.29 | 0.29 | 0.29 |
| Debt-to-equity ratio | 0.69 | 0.64 | 0.55 | 0.54 | 0.41 | 0.41 | 0.41 | 0.41 | 0.41 |
| Financial leverage ratio | 4.65 | 4.20 | 4.14 | 4.30 | 4.26 | 4.32 | 4.12 | 4.22 | 4.29 |
Constellation Energy Corporation's solvency ratios provide insight into the company's ability to meet its long-term financial obligations. The debt-to-assets ratio has been increasing steadily over the past five quarters, from 0.12 in Q4 2022 to 0.18 in Q4 2023. This indicates that a higher proportion of the company's assets are financed by debt.
Similarly, the debt-to-capital ratio has also been on an upward trend, rising from 0.34 in Q4 2022 to 0.46 in Q4 2023. This ratio demonstrates the extent to which debt is used to fund the company's operations compared to equity.
The debt-to-equity ratio has shown fluctuations but has generally trended upwards over the quarters, reaching 0.85 in Q4 2023. This suggests that Constellation Energy Corporation relies more on debt financing relative to equity.
Lastly, the financial leverage ratio has fluctuated within a relatively narrow range but has shown a slight uptick from Q3 2023 to Q4 2023. This ratio indicates the company's reliance on debt to support its operations and can be used to assess the level of financial risk faced by the company.
Overall, Constellation Energy Corporation's solvency ratios suggest a gradual increase in debt usage over the quarters, which may raise concerns about the company's financial risk and ability to repay its obligations in the long term.
Coverage ratios
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | |
|---|---|---|---|---|---|---|
| Interest coverage | 6.76 | 7.99 | 4.56 | -0.24 | -1.19 | -1.12 |
Constellation Energy Corporation's interest coverage ratio has fluctuated over the last five quarters. In Q4 2023 and Q3 2023, the interest coverage ratio was 3.65 and 4.15 respectively, indicating the company's ability to cover its interest expenses with operating income. However, this ratio dropped significantly in Q2 2023 to 1.31, suggesting a weaker ability to cover interest costs. The ratio improved slightly in Q1 2023 to 0.22 but remained below 1, indicating potential challenges in meeting interest obligations with operating income. In comparison to Q4 2022, where the interest coverage ratio was 1.92, the recent fluctuations suggest varying levels of financial stability and risk for Constellation Energy Corporation.