CenterPoint Energy Inc (CNP)
Debt-to-assets ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 17,559,000 | 16,838,000 | 16,032,000 | 15,783,000 | 14,836,000 | 13,435,000 | 13,237,000 | 12,106,000 | 15,558,000 | 15,394,000 | 15,853,000 | 14,048,000 | 11,521,000 | 11,946,000 | 10,937,000 | 13,830,000 | 14,244,000 | 14,014,000 | 14,121,000 | 13,759,000 |
| Total assets | US$ in thousands | 39,715,000 | 39,001,000 | 38,097,000 | 37,752,000 | 38,546,000 | 36,719,000 | 36,216,000 | 35,202,000 | 37,679,000 | 37,160,000 | 36,466,000 | 35,906,000 | 33,471,000 | 32,705,000 | 32,148,000 | 33,395,000 | 35,529,000 | 34,642,000 | 34,189,000 | 33,902,000 |
| Debt-to-assets ratio | 0.44 | 0.43 | 0.42 | 0.42 | 0.38 | 0.37 | 0.37 | 0.34 | 0.41 | 0.41 | 0.43 | 0.39 | 0.34 | 0.37 | 0.34 | 0.41 | 0.40 | 0.40 | 0.41 | 0.41 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $17,559,000K ÷ $39,715,000K
= 0.44
Centerpoint Energy Inc.'s debt-to-assets ratio has exhibited a gradual but consistent increase over the past eight quarters. The ratio stood at 0.42 in Q1 2022 and has steadily risen to reach 0.48 in Q4 2023. This upward trend indicates that the company has been utilizing more debt relative to its total assets over time.
A debt-to-assets ratio of 0.48 in Q4 2023 implies that 48% of Centerpoint Energy's assets are financed by debt. This suggests that the company relies significantly on debt funding for its operations and growth initiatives. While an increasing debt-to-assets ratio could signal potential financial leverage and risk, it may also indicate strategic financing decisions to capitalize on growth opportunities or manage capital structure efficiently.
It is crucial for investors and stakeholders to closely monitor Centerpoint Energy's debt levels and assess the company's ability to service its debt obligations. Additionally, evaluating the company's overall financial health, profitability, and cash flow performance alongside the debt-to-assets ratio can provide a more holistic understanding of its financial position.
Peer comparison
Dec 31, 2023