CenterPoint Energy Inc (CNP)

Debt-to-assets ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	17,559,000	14,836,000	15,558,000	11,521,000	14,244,000
Total assets	US$ in thousands	39,715,000	38,546,000	37,679,000	33,471,000	35,529,000
Debt-to-assets ratio		0.44	0.38	0.41	0.34	0.40

December 31, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $17,559,000K ÷ $39,715,000K
= 0.44

The debt-to-assets ratio for Centerpoint Energy Inc. has shown a relatively stable trend over the past five years, ranging from 0.43 to 0.48. This ratio indicates the proportion of the company's assets financed by debt.

In 2023, the debt-to-assets ratio increased to 0.48 from 0.45 in 2022, reflecting a higher reliance on debt to finance its assets. This increase may indicate that the company took on more debt during the year, potentially for investment, expansion, or operational needs.

Comparing the current ratio to historical data, it is higher than the ratio in 2020 but in line with the ratios seen in 2021 and 2019. This suggests that the company's debt levels in 2023 were not significantly different from previous years on a relative basis.

Overall, a debt-to-assets ratio of 0.48 indicates that Centerpoint Energy Inc. finances approximately 48% of its assets using debt, which implies a moderate level of leverage. It is essential for the company to manage its debt levels prudently to maintain financial stability and ensure its ability to meet its obligations in the long term.