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.
Peer comparison
Dec 31, 2023