CenterPoint Energy Inc (CNP)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 43,768,000 | 39,715,000 | 38,546,000 | 37,679,000 | 33,471,000 |
| Total stockholders’ equity | US$ in thousands | 10,666,000 | 9,667,000 | 10,045,000 | 9,415,000 | 8,348,000 |
| Financial leverage ratio | 4.10 | 4.11 | 3.84 | 4.00 | 4.01 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $43,768,000K ÷ $10,666,000K
= 4.10
The financial leverage ratio of CenterPoint Energy Inc has exhibited some fluctuations over the past five years. It stood at 4.01 as of December 31, 2020, and slightly decreased to 4.00 by the end of 2021. Subsequently, there was a noticeable decline to 3.84 by December 31, 2022. However, the ratio increased to 4.11 by the end of 2023 before stabilizing at 4.10 as of December 31, 2024.
Overall, the company's financial leverage ratio has shown variability, with a peak in 2023 and some fluctuations in the other years. This indicates that CenterPoint Energy Inc has been using a combination of debt and equity to finance its operations, and investors may want to closely monitor this ratio to assess the company's risk profile and financial health.
Peer comparison
Dec 31, 2024