Dominion Energy Inc (D)
Debt-to-equity 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-equity ratio | 1.54 | 1.43 | 1.32 | 1.23 | 1.00 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $42,526,000K ÷ $27,529,000K
= 1.54
The debt-to-equity ratio of Dominion Energy Inc has shown a fluctuating trend over the past five years, ranging from 1.18 in 2019 to 1.64 in 2022. This ratio indicates the proportion of debt financing relative to equity financing in the company's capital structure.
A higher debt-to-equity ratio suggests that the company relies more on debt to finance its operations and growth, which can increase financial risk and leverage. Conversely, a lower ratio indicates a lower reliance on debt and potentially lower financial risk.
In 2023, the debt-to-equity ratio decreased slightly to 1.61 from 1.64 in 2022. This may suggest that Dominion Energy Inc has reduced its debt levels relative to equity, which could be a positive sign for investors as it may signal improved financial stability and lower risk. However, it is important to consider the reasons behind this shift and analyze the overall financial health of the company comprehensively.
Peer comparison
Dec 31, 2023