CenterPoint Energy Inc (CNP)
Solvency ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 4.10 | 4.07 | 3.96 | 4.02 | 4.11 | 4.07 | 3.68 | 3.65 | 3.84 | 3.68 | 3.61 | 3.54 | 4.00 | 4.19 | 4.11 | 4.12 | 4.01 | 3.90 | 3.83 | 4.79 |
CenterPoint Energy Inc's solvency ratios indicate a strong financial position with consistently low debt levels relative to its assets, capital, and equity over the years analyzed. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have all been recorded at 0.00, reflecting that the company has no significant debt obligations in relation to its total assets, capital structure, and shareholders' equity.
Furthermore, the Financial leverage ratio has shown fluctuations but generally remained within a range of 3.54 to 4.19, indicating that the company's financial leverage has been relatively steady and not excessive. A lower financial leverage ratio suggests lower financial risk and greater financial stability.
Overall, based on the solvency ratios provided, CenterPoint Energy Inc appears to have a conservative financial structure with minimal debt levels, which is favorable for its long-term financial health and ability to meet its obligations.
Coverage ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 2.45 | 2.29 | 2.43 | 2.94 | 3.51 | 4.33 | 5.14 | 5.59 | 5.40 | 5.27 | 5.14 | 5.45 | 5.94 | 6.54 | 6.22 | 5.41 | 2.00 | 1.88 | 2.30 | 2.47 |
CenterPoint Energy Inc's interest coverage ratio has shown fluctuations over the past few years. The interest coverage ratio is a measure of a company's ability to meet its interest payments on outstanding debt.
From March 2020 to September 2020, the interest coverage ratio declined gradually from 2.47 to 1.88. This decrease indicates that CenterPoint Energy Inc's ability to cover its interest expenses was weakening during this period.
However, from March 2021 onwards, the interest coverage ratio started to improve significantly, reaching a peak of 6.54 in September 2021. This sharp increase indicates that the company's ability to cover its interest payments strengthened notably.
Although the interest coverage ratio fluctuated slightly after September 2021, it remained relatively stable within a range of 4.33 to 6.54. This stability suggests that CenterPoint Energy Inc has managed to maintain a strong capability to meet its interest obligations.
In the most recent period, the interest coverage ratio was reported at 2.45 as of December 31, 2024, representing a slight decline from the previous quarters. This decrease may indicate a moderate weakening in the company's ability to cover its interest payments compared to the earlier periods.
Overall, CenterPoint Energy Inc's interest coverage ratio has shown fluctuations over the years, with periods of improvement and slight declines. It is important for the company to monitor and manage its interest coverage ratio to ensure it remains at a healthy level to meet its debt obligations comfortably.