DTE Energy Company (DTE)

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	19,546,000	17,978,000	17,378,000	19,439,000	16,606,000
Total stockholders’ equity	US$ in thousands	11,050,000	10,397,000	8,705,000	12,425,000	11,672,000
Debt-to-capital ratio		0.64	0.63	0.67	0.61	0.59

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $19,546,000K ÷ ($19,546,000K + $11,050,000K)
= 0.64

The debt-to-capital ratio of DTE Energy Co. has fluctuated over the past five years, ranging from 0.60 to 0.68. The ratio indicates the proportion of the company's total debt relative to its total capital, which includes both debt and equity.

In 2023 and 2022, the company maintained a stable debt-to-capital ratio of 0.65, suggesting a consistent balance between debt and equity financing. This indicates that 65% of DTE Energy Co.'s capital structure was composed of debt, while the remaining 35% was derived from equity.

The slight decrease in the ratio from 2021 to 2020 (0.68 to 0.61) indicates a reduction in the proportion of debt relative to capital, possibly due to either a decrease in debt levels or an increase in equity. This shift may reflect a strategic decision to manage debt more effectively or improve the company's financial stability.

Overall, the company's debt-to-capital ratio has generally remained at moderate levels over the years, indicating a balanced approach to capital structure management. It is important for investors and stakeholders to monitor this ratio as part of assessing the company's financial leverage and risk profile.