DTE Energy Company (DTE)
Debt-to-capital ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 21,963,000 | 23,635,000 | 22,460,000 | 21,633,000 | 19,546,000 | 19,123,000 | 19,221,000 | 19,368,000 | 17,978,000 | 18,846,000 | 18,255,000 | 18,249,000 | 17,378,000 | 17,222,000 | 22,909,000 | 20,432,000 | 19,439,000 | 18,660,000 | 17,997,000 | 17,398,000 |
| Total stockholders’ equity | US$ in thousands | 11,699,000 | 11,592,000 | 11,106,000 | 11,173,000 | 11,050,000 | 10,850,000 | 10,481,000 | 10,642,000 | 10,397,000 | 8,980,000 | 8,574,000 | 8,863,000 | 8,705,000 | 8,567,000 | 12,378,000 | 12,552,000 | 12,425,000 | 12,323,000 | 11,724,000 | 11,822,000 |
| Debt-to-capital ratio | 0.65 | 0.67 | 0.67 | 0.66 | 0.64 | 0.64 | 0.65 | 0.65 | 0.63 | 0.68 | 0.68 | 0.67 | 0.67 | 0.67 | 0.65 | 0.62 | 0.61 | 0.60 | 0.61 | 0.60 |
December 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $21,963,000K ÷ ($21,963,000K + $11,699,000K)
= 0.65
DTE Energy Company's debt-to-capital ratio has shown a gradual increase from 0.60 as of March 31, 2020, to 0.65 as of June 30, 2021, reaching its peak at 0.68 as of June 30, 2022. Thereafter, the ratio exhibited some fluctuations but generally remained within the range of 0.63 to 0.67.
A higher debt-to-capital ratio indicates that the company relies more on debt financing as compared to equity financing. This can lead to higher financial risk due to increased interest payments and potential difficulty in servicing debt obligations. Conversely, a lower ratio signifies a stronger equity position and less reliance on debt for funding operations and investments.
Overall, the trend in DTE Energy Company's debt-to-capital ratio suggests a moderate increase in leverage over the analyzed period, potentially indicating a shift towards more debt-funded capital structure or increased investments that require additional financing. It would be important for stakeholders to monitor this ratio alongside other financial metrics to assess the company's financial health and risk profile.
Peer comparison
Dec 31, 2024