DTE Energy Company (DTE)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 48,846,000 | 44,755,000 | 42,683,000 | 39,719,000 | 45,496,000 |
| Total stockholders’ equity | US$ in thousands | 11,699,000 | 11,050,000 | 10,397,000 | 8,705,000 | 12,425,000 |
| Financial leverage ratio | 4.18 | 4.05 | 4.11 | 4.56 | 3.66 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $48,846,000K ÷ $11,699,000K
= 4.18
The financial leverage ratio for DTE Energy Company has shown some fluctuations over the past five years. At the end of 2020, the ratio was 3.66, indicating that the company relied more on debt to finance its operations. By the end of 2021, the ratio increased to 4.56, signaling a higher level of financial leverage, which could pose increased risks due to the higher debt burden.
However, in 2022, there was a slight decrease in the financial leverage ratio to 4.11, suggesting a potential effort to reduce the reliance on debt financing. This trend continued in 2023 and 2024, with the ratio further decreasing to 4.05 and then slightly increasing to 4.18, still indicating a relatively high level of financial leverage compared to the base year of 2020.
Overall, the company's financial leverage ratio has exhibited some variability, with a general trend of moderate decrease in recent years. It is important for investors and stakeholders to monitor this ratio closely, as a high financial leverage ratio can indicate increased financial risk and potential challenges in meeting debt obligations.
Peer comparison
Dec 31, 2024