DTE Energy Company (DTE)
Financial leverage ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 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 | 42,268,000 | 38,345,000 | 36,851,000 | 36,434,000 |
| Total stockholders’ equity | US$ in thousands | 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 | 11,672,000 | 10,740,000 | 10,396,000 | 10,545,000 |
| Financial leverage ratio | 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 | 3.62 | 3.57 | 3.54 | 3.46 |
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 in the range of 4.00 to 4.82 over the past eight quarters. A financial leverage ratio of 4.00 to 4.11 indicates that the company relies more on debt financing rather than equity to fund its operations and growth. This level of leverage may suggest a higher risk for the company, as the higher the ratio, the more financial risk the company carries.
The decreasing trend from Q3 2022 to Q2 2023, and the subsequent slight increase in Q4 2023, could indicate that the company may have adjusted its capital structure or reduced its debt levels. However, the ratio still remains relatively high.
It is important for investors and stakeholders to monitor DTE Energy Co.'s financial leverage ratio closely, as high levels of leverage can amplify both positive and negative financial performance outcomes. Additionally, a high financial leverage ratio may impact the company's ability to access credit markets and could potentially lead to liquidity issues in the future.
Peer comparison
Dec 31, 2023