Dominion Energy Inc (D)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 42,526,000 | 39,680,000 | 35,996,000 | 31,996,000 | 32,055,000 |
| Total stockholders’ equity | US$ in thousands | 27,529,000 | 27,659,000 | 27,308,000 | 26,117,000 | 31,994,000 |
| Debt-to-capital ratio | 0.61 | 0.59 | 0.57 | 0.55 | 0.50 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $42,526,000K ÷ ($42,526,000K + $27,529,000K)
= 0.61
The debt-to-capital ratio of Dominion Energy Inc has shown a steady increase from 0.54 in 2019 to 0.62 in 2023. This indicates a rising proportion of debt relative to the total capital structure of the company over the past five years. The consistency of the ratio around the 0.62 level in the last two years suggests a stable reliance on debt financing. It is important to assess whether this trend is sustainable and to monitor the company's ability to manage its debt levels effectively in order to mitigate potential financial risks.
Peer comparison
Dec 31, 2023