DTE Energy Company (DTE)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 48,846,000 | 49,806,000 | 47,811,000 | 45,902,000 | 44,755,000 | 43,730,000 | 42,921,000 | 42,518,000 | 42,683,000 | 41,954,000 | 41,314,000 | 40,360,000 | 39,719,000 | 39,435,000 | 49,636,000 | 46,699,000 | 45,496,000 | 44,439,000 | 43,739,000 | 43,232,000 |
| 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 |
| Financial leverage ratio | 4.18 | 4.30 | 4.30 | 4.11 | 4.05 | 4.03 | 4.10 | 4.00 | 4.11 | 4.67 | 4.82 | 4.55 | 4.56 | 4.60 | 4.01 | 3.72 | 3.66 | 3.61 | 3.73 | 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 of DTE Energy Company has shown a fluctuating trend over the periods presented. The ratio started at 3.66 in March 2020, increased gradually to reach 4.82 by June 30, 2022, and then decreased slightly to 4.18 by December 31, 2024.
The increase in the financial leverage ratio indicates that the company has been relying more on debt financing relative to equity. This could potentially increase the financial risk of the company as higher leverage implies higher interest payments and a greater sensitivity to economic downturns.
It would be important for stakeholders to monitor this ratio closely as a continuously increasing trend could signal potential financial distress and affect the company's ability to meet its debt obligations. Additionally, a high financial leverage ratio may also impact the company's credit rating and ability to access financing at favorable terms.
Peer comparison
Dec 31, 2024