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.