Duke Energy Corporation (DUK)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 3.72 | 3.60 | 3.61 | 3.44 | 3.39 |
Based on the provided data for Duke Energy Corporation, the solvency ratios indicate a strong financial position with very low levels of debt relative to assets and capital.
- Debt-to-assets ratio: The data shows that the debt-to-assets ratio for Duke Energy Corporation is consistently at 0.00 from December 31, 2020, to December 31, 2024. This implies that the company's total debt is negligible in comparison to its total assets, suggesting a low level of financial risk.
- Debt-to-capital ratio: Similar to the debt-to-assets ratio, the debt-to-capital ratio remains at 0.00 for the same period, indicating that Duke Energy Corporation has very little debt in relation to its total capital, which includes both debt and equity.
- Debt-to-equity ratio: The data also reveals that the debt-to-equity ratio is consistently at 0.00 from December 31, 2020, to December 31, 2024. This indicates that the company's reliance on debt financing in comparison to equity is minimal, reflecting a strong balance sheet structure.
- Financial leverage ratio: The financial leverage ratio shows an increasing trend over the period, from 3.39 on December 31, 2020, to 3.72 on December 31, 2024. This suggests that the company's level of debt in relation to its equity and assets has slightly increased over time, but it still remains at a moderate level.
Overall, based on the solvency ratios provided, Duke Energy Corporation appears to maintain a conservative approach towards debt management and demonstrates a healthy financial position with a low level of leverage and risk.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 2.53 | 2.39 | 2.69 | 2.80 | 2.60 |
Interest coverage ratio is a key financial metric used to assess a company's ability to meet its interest obligations with its operating income. In the case of Duke Energy Corporation, the interest coverage ratio has shown a relatively stable trend over the past five years.
As of December 31, 2020, Duke Energy's interest coverage ratio was 2.60, indicating that the company generated operating income 2.60 times greater than its interest expenses for that year. Over the next few years, the interest coverage ratio increased slightly to 2.80 by December 31, 2021, before dipping to 2.69 by December 31, 2022.
In the most recent years, Duke Energy's interest coverage ratio decreased further to 2.39 by December 31, 2023, and then slightly improved to 2.53 by December 31, 2024. Despite some fluctuations, the interest coverage ratio remained above 1, suggesting that Duke Energy's operating income has consistently been sufficient to cover its interest expenses.
Overall, while the company has maintained a reasonable interest coverage ratio, investors and stakeholders may want to monitor the trend carefully to ensure that Duke Energy continues to have a healthy level of operating income relative to its interest obligations.