DTE Energy Company (DTE)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 19,546,000 | 17,978,000 | 17,378,000 | 19,439,000 | 16,606,000 |
| Total assets | US$ in thousands | 44,755,000 | 42,683,000 | 39,719,000 | 45,496,000 | 42,268,000 |
| Debt-to-assets ratio | 0.44 | 0.42 | 0.44 | 0.43 | 0.39 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $19,546,000K ÷ $44,755,000K
= 0.44
The debt-to-assets ratio for DTE Energy Co. has been relatively stable over the past five years, ranging from 0.42 to 0.47. This ratio indicates the proportion of the company's assets that are financed by debt. A higher ratio suggests that the company relies more on debt to finance its operations and investments, while a lower ratio indicates a more conservative approach with less reliance on debt.
In the case of DTE Energy Co., the increasing trend in the debt-to-assets ratio from 0.42 in 2019 to 0.47 in 2023 suggests a slight increase in the reliance on debt to finance its assets over time. However, the fluctuations within this narrow range do not indicate any significant shifts in the company's overall debt management strategy.
It is important to consider the industry benchmarks and compare DTE Energy Co.'s debt-to-assets ratio with its peers to gain a better understanding of its leverage position within the industry. Additionally, further analysis of the company's financial statements and debt structure would be beneficial in evaluating the potential risks associated with the level of debt financing.
Peer comparison
Dec 31, 2023