DTE Energy Company (DTE)

Solvency ratios

	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
Debt-to-assets ratio	0.45	0.47	0.47	0.47	0.44	0.44	0.45	0.46	0.42	0.45	0.44	0.45	0.44	0.44	0.46	0.44	0.43	0.42	0.41	0.40
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
Debt-to-equity ratio	1.88	2.04	2.02	1.94	1.77	1.76	1.83	1.82	1.73	2.10	2.13	2.06	2.00	2.01	1.85	1.63	1.56	1.51	1.54	1.47
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

DTE Energy Company's solvency ratios reveal its ability to meet its long-term financial obligations and manage its debt levels.

The Debt-to-assets ratio has shown a slight increase from 0.40 in March 2020 to 0.45 in June 2022 before reverting back to 0.44 by December 2024. This ratio indicates that 44-47% of the company's assets are financed by debt over the period.

The Debt-to-capital ratio has been relatively stable, ranging between 0.60 to 0.68 during the same period. This ratio represents the proportion of the company's capital that is financed by debt, showing that 60-68% of the capital structure is debt-funded.

The Debt-to-equity ratio has exhibited a significant upward trend, rising from 1.47 in March 2020 to 2.02 in June 2024. This suggests that the company's debt levels have been increasing compared to equity.

The Financial leverage ratio has also shown an upward trend, increasing from 3.66 in March 2020 to 4.30 in June 2024. This indicates that the company's financial leverage, which measures the proportion of debt in the capital structure, has been on the rise.

Overall, while DTE Energy Company has maintained relatively stable debt-to-assets and debt-to-capital ratios, the increasing trend in debt-to-equity and financial leverage ratios suggests a higher reliance on debt financing over time, which may pose risks in terms of financial stability and flexibility in the long run.

Coverage ratios

	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
Interest coverage	2.24	2.48	2.68	2.72	2.98	2.78	2.91	2.68	2.65	2.75	2.01	2.27	2.23	2.23	3.19	3.31	3.24	3.30	3.04	2.99

The interest coverage ratio measures a company's ability to meet its interest obligations on outstanding debt. For DTE Energy Company, the trend in interest coverage ratio over the past few years shows some fluctuations. It was relatively stable around the 3.0 range in 2020 and 2021. However, there was a noticeable decrease in interest coverage starting from the third quarter of 2021, dropping to around 2.0-2.3 range in 2022.

This declining trend continued through 2023 and 2024, with interest coverage ratios generally below the previously stable levels. The lowest point was seen in the second and fourth quarters of 2022, where the interest coverage ratio fell to around 2.0. Although there were some improvements in the later quarters of 2023 and 2024, the ratio still remained below the earlier levels seen in 2020 and 2021.

Overall, the declining trend in interest coverage for DTE Energy Company from 2021 to 2024 indicates potential challenges in meeting its interest payment obligations from operating earnings. This trend may warrant further investigation into the company's financial health and debt management strategies moving forward.