CenterPoint Energy Inc (CNP)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	9,667,000	9,585,000	10,366,000	10,356,000	10,042,000	9,989,000	10,023,000	9,951,000	9,415,000	8,865,000	8,870,000	8,716,000	8,348,000	8,388,000	8,392,000	6,970,000	8,359,000	8,346,000	8,257,000	8,216,000
Debt-to-capital ratio		0.64	0.64	0.61	0.60	0.60	0.57	0.57	0.55	0.62	0.63	0.64	0.62	0.58	0.59	0.57	0.66	0.63	0.63	0.63	0.63

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $17,559,000K ÷ ($17,559,000K + $9,667,000K)
= 0.64

The debt-to-capital ratio of Centerpoint Energy Inc. has shown a gradual increase over the past eight quarters, starting at 0.60 in Q1 2022 and reaching 0.67 in Q4 2023. This indicates that the company has been relying more on debt to finance its operations and investments relative to its total capital structure.

The trend suggests that Centerpoint Energy has been taking on more debt compared to its equity as a source of funding. While a higher debt-to-capital ratio can be beneficial in leveraging growth opportunities and maximizing returns for shareholders, it also exposes the company to higher financial risk, especially in times of economic downturns or rising interest rates.

It is essential for investors and stakeholders to monitor this ratio closely to ensure that the company maintains a healthy balance between debt and equity in its capital structure to sustain long-term financial stability and profitability.