CenterPoint Energy Inc (CNP)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 4.10 | 4.11 | 3.84 | 4.00 | 4.01 |
CenterPoint Energy Inc's solvency ratios indicate a consistently low level of debt relative to its assets, capital, and equity over the past five years. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have all remained at 0.00 across the years, suggesting that the company has not been relying heavily on debt to finance its operations.
Additionally, the Financial leverage ratio has fluctuated slightly over the same period, ranging from 3.84 to 4.11. This ratio measures the extent to which the company's operations are financed through debt. Even though there are small fluctuations in the ratio, the overall levels remain relatively stable, indicating that CenterPoint Energy Inc has maintained a prudent level of financial leverage.
Overall, based on these solvency ratios, CenterPoint Energy Inc appears to have a strong financial position with low debt levels and a stable capital structure, which may indicate a lower risk of financial distress.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 2.45 | 2.55 | 3.70 | 2.47 | 2.18 |
CenterPoint Energy Inc's interest coverage ratio has shown some fluctuation over the past five years.
At the end of 2020, the interest coverage ratio was 2.18, indicating that the company's operating income was just sufficient to cover its interest expenses.
By the end of 2021, the interest coverage ratio improved to 2.47, showing a slight increase in the company's ability to cover its interest obligations.
In 2022, there was a significant improvement in the interest coverage ratio to 3.70, suggesting that CenterPoint Energy Inc had a stronger ability to cover its interest payments from its operating income.
However, in 2023, the interest coverage ratio dropped to 2.55, indicating a slight reduction in the company's ability to cover its interest expenses compared to the previous year.
By the end of 2024, the interest coverage ratio was 2.45, showing a slight decrease from the previous year.
Overall, CenterPoint Energy Inc's interest coverage ratio has demonstrated some variability, with fluctuations in the company's ability to meet its interest obligations through operating income. It is important for investors and creditors to closely monitor this ratio to assess the company's financial health and ability to manage its debt obligations effectively.