DTE Energy Company (DTE)

The solvency ratios of DTE Energy Co. indicate the company's ability to meet its long-term financial obligations.

1. Debt-to-assets ratio: This ratio has been increasing slightly over the past five years, from 0.42 in 2019 to 0.47 in 2023. This suggests that DTE Energy Co. has been using a higher proportion of debt to finance its assets.

2. Debt-to-capital ratio: The debt-to-capital ratio has shown some variability over the years, ranging from 0.60 in 2019 to 0.65 in 2023. This ratio reflects the percentage of capital that comes from debt financing, and the trend suggests a relatively stable capital structure over the period.

3. Debt-to-equity ratio: The trend in the debt-to-equity ratio has been increasing, indicating that the company has been relying more on debt relative to equity to finance its operations. The ratio stood at 1.50 in 2019 and increased to 1.89 in 2023.

4. Financial leverage ratio: The financial leverage ratio shows the extent to which the company is using debt to fund its operations. DTE Energy Co.'s financial leverage ratio has been fluctuating, with a peak of 4.56 in 2021 and a low of 3.59 in 2019. This suggests some volatility in the company's leverage position.

Overall, the solvency ratios of DTE Energy Co. indicate a tendency towards higher leverage and reliance on debt financing. Investors and stakeholders should closely monitor these ratios to assess the company's ability to manage its debt levels and financial obligations effectively over the long term.

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Coverage ratios

DTE Energy Co.'s interest coverage has displayed fluctuating trends over the past five years. The interest coverage ratio measures a company's ability to meet its interest payments on outstanding debt. A higher ratio indicates a greater ability to cover interest expenses from operating income.

In 2023, the interest coverage ratio improved to 3.08, indicating that the company's operating income was able to cover its interest payments approximately 3.08 times. This suggests a stronger ability to meet its interest obligations compared to the previous year.

In 2022, the interest coverage ratio was 2.75, which was lower than in 2023 but still above the ratios from the two preceding years. This may indicate that the company's ability to cover interest expenses dipped slightly that year.

In 2021, the interest coverage ratio was 2.51, which was the lowest among the five years presented in the table. A lower ratio suggests a reduced ability to cover interest payments with operating income. This could potentially raise concerns about the company's financial health and ability to service its debt.

The interest coverage ratio improved in 2020 to 3.16, indicating a more robust ability to cover interest expenses compared to the previous year. Similarly, in 2019, the ratio was 2.94, showing a moderate ability to meet interest payments.

Overall, DTE Energy Co.'s interest coverage has shown variability over the five-year period, with both improvements and declines in the company's ability to cover interest expenses. Investors and analysts may want to further investigate the underlying factors driving these fluctuations to assess the company's financial stability and risk profile.