Constellation Energy Corp (CEG)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 |
Constellation Energy Corp's solvency ratios indicate a strong financial position with consistently low debt-related ratios over the reporting periods. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have all remained at 0.00, suggesting that the company has minimal debt relative to its total assets, capital, and equity.
The Financial leverage ratio, which measures the extent to which a company is using debt to finance its operations, has shown slight fluctuations over time but generally remains at a moderate level. The ratio ranged from 3.60 to 4.65 over the reporting periods, indicating that Constellation Energy Corp has a moderate level of financial leverage.
Overall, based on the solvency ratios provided, Constellation Energy Corp appears to have a healthy balance sheet with low debt levels and a reasonable level of financial leverage, which bodes well for its long-term financial stability and ability to meet its debt obligations.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 9.20 | 6.62 | 5.90 | 5.54 | 4.00 | 4.70 | 1.22 | -2.20 | -1.08 | -3.25 | 1.12 | 3.12 | -1.47 | 1.99 | 3.06 | 5.46 | 25.58 | — | — | — |
The interest coverage ratio of Constellation Energy Corp provides insight into the company's ability to meet its interest payments on outstanding debt with its earnings. The trend analysis of the interest coverage ratio from March 31, 2020, to December 31, 2024, shows fluctuations in the company's ability to cover its interest expenses.
- As of December 31, 2020, the interest coverage ratio was 25.58, indicating that the company had sufficient earnings to cover its interest expenses comfortably.
- However, from March 31, 2021, to September 30, 2022, the interest coverage ratio declined significantly, demonstrating a potential strain on the company's ability to meet its interest obligations from its earnings.
- The ratio turned negative from December 31, 2021, to March 31, 2023, indicating that the company's earnings were inadequate to cover its interest payments during those periods.
- A positive trend emerged from June 30, 2023, onwards, with the interest coverage ratio gradually improving. By December 31, 2024, the interest coverage ratio stood at 9.20, signifying an enhancement in the company's ability to cover its interest expenses compared to the earlier periods.
In conclusion, Constellation Energy Corp experienced fluctuations in its interest coverage ratio over the analyzed period, with periods of strong coverage followed by challenges in meeting interest obligations. The company showed signs of improvement in managing its interest payments towards the later periods, leading to a more stable financial position in covering its debt servicing requirements.