DTE Energy Company (DTE)

Solvency ratios

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
Debt-to-assets ratio 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 0.39 0.33 0.34 0.32
Debt-to-capital ratio 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 0.59 0.54 0.54 0.52
Debt-to-equity ratio 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 1.42 1.18 1.19 1.10
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

The solvency ratios of DTE Energy Co. indicate the company's ability to meet its long-term financial obligations. The trends in the ratios over the past eight quarters provide insights into the company's leverage and financial risk.

The debt-to-assets ratio has remained relatively stable around 0.46 to 0.47, indicating that on average, about 46-47% of the company's total assets are financed by debt. This suggests a moderate reliance on debt in funding its operations and investments.

The debt-to-capital ratio has also been consistent at around 0.65, showing that debt constitutes approximately 65% of the company's total capital structure. This ratio indicates a stable balance between debt and equity in financing the company's operations.

The debt-to-equity ratio has exhibited some fluctuations but has generally stayed within the range of 1.83 to 1.89. This implies that the company is using a significant amount of debt relative to its equity in its capital structure, which may increase financial risk and interest payment obligations.

The financial leverage ratio, which measures the company's total assets relative to its equity, has shown variability between 4.00 and 4.67. A higher financial leverage ratio suggests that the company is relying more on debt to finance its assets, which can amplify both returns and risks for shareholders.

Overall, DTE Energy Co. has maintained a stable financial position based on these solvency ratios, with a balanced mix of debt and equity in its capital structure. However, the company's higher debt levels, as seen in the debt-to-equity ratio, indicate a higher level of financial risk that should be monitored closely.

Coverage ratios

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
Interest coverage 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 3.18 2.94 3.01 3.16

Based on the data provided, DTE Energy Co.'s interest coverage has shown a relatively stable trend over the past eight quarters, ranging between 2.40 and 3.08. The interest coverage ratio measures the company's ability to meet its interest obligations from its operating income.

The average interest coverage ratio for the eight quarters is approximately 2.76, indicating that the company generated enough operating income to cover its interest expenses nearly three times during this period. A higher interest coverage ratio is generally viewed positively by investors and creditors as it suggests a lower risk of default on interest payments.

Overall, DTE Energy Co. has maintained a healthy interest coverage ratio, indicating a solid ability to meet its interest obligations out of its operating earnings. However, it is important to continue monitoring this ratio to ensure the company's financial health and ability to sustain its debt obligations.