Duke Energy Corporation (DUK)

Duke Energy Corp.'s solvency ratios have shown relatively stable trends over the past five years. The debt-to-assets ratio has increased from 0.39 in 2019 to 0.45 in 2023, indicating that the proportion of Duke Energy's assets financed by debt has increased slightly over this period.

Similarly, the debt-to-capital ratio has also seen a slight uptick, rising from 0.57 in 2019 to 0.62 in 2023. This suggests that Duke Energy's capital structure has become slightly more debt-heavy over the years.

The debt-to-equity ratio, which measures the company's financial leverage, has shown a steady increase from 1.31 in 2019 to 1.62 in 2023. This indicates that Duke Energy has been increasingly relying on debt financing relative to equity financing.

Finally, the financial leverage ratio, which reflects the company's total debt relative to its equity, displays a stable trend despite minor fluctuations. This ratio remained relatively consistent around 3.4-3.6 during the five-year period analyzed.

Overall, based on these solvency ratios, Duke Energy Corp. appears to have maintained a moderate level of debt relative to its assets and capital over the years. However, the increasing debt-to-equity ratio suggests a higher level of financial risk associated with the company's capital structure.

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Coverage ratios

The interest coverage ratio measures a company's ability to meet its interest expenses using its operating income. A higher ratio indicates that the company is more capable of covering its interest obligations.

An analysis of Duke Energy Corp.'s interest coverage over the past five years reveals fluctuations in its ability to cover interest expenses. The ratio stood at 2.39 in 2023, down from 2.68 in 2022 and 2.52 in 2021. This decline suggests a potential decrease in Duke Energy Corp.'s ability to cover interest expenses from operating income.

Comparing the 2023 ratio with the 2020 and 2019 ratios of 1.63 and 2.66, respectively, the company's current interest coverage appears to be better than in 2020 but lower than in 2019. This indicates a mixed performance in managing interest expenses in recent years.

Further analysis would be necessary to understand the factors contributing to the fluctuations in Duke Energy Corp.'s interest coverage ratio and assess the company's overall financial health and ability to service its debt obligations effectively.