DTE Energy Company (DTE)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 44,755,000 | 42,683,000 | 39,719,000 | 45,496,000 | 42,268,000 |
| Total stockholders’ equity | US$ in thousands | 11,050,000 | 10,397,000 | 8,705,000 | 12,425,000 | 11,672,000 |
| Financial leverage ratio | 4.05 | 4.11 | 4.56 | 3.66 | 3.62 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $44,755,000K ÷ $11,050,000K
= 4.05
The financial leverage ratio of DTE Energy Co. has fluctuated over the past five years. The ratio was highest in 2021 at 4.56, suggesting a higher level of debt relative to equity in that year. Subsequently, in 2022 and 2023, the ratio decreased to 4.11 and 4.05, respectively, indicating a slight improvement in the company's leverage position.
Comparing the most recent ratio to the historical trend, it appears that the company's leverage has been relatively high in recent years, with ratios above 4 since 2020. This level of financial leverage indicates that DTE Energy Co. relies more heavily on debt financing compared to equity, which can increase the company's financial risk and interest expense.
It would be important for stakeholders to monitor DTE Energy Co.'s financial leverage ratio closely to assess the company's ability to manage its debt levels effectively and ensure sustainable growth in the long term.
Peer comparison
Dec 31, 2023