Duke Energy Corporation (DUK)

Debt-to-capital ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	72,452,000	65,873,000	60,448,000	55,625,000	54,985,000
Total stockholders’ equity	US$ in thousands	49,112,000	49,322,000	49,296,000	47,964,000	46,822,000
Debt-to-capital ratio		0.60	0.57	0.55	0.54	0.54

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $72,452,000K ÷ ($72,452,000K + $49,112,000K)
= 0.60

Duke Energy Corp.'s debt-to-capital ratio has shown a generally increasing trend over the past five years, indicating a growing reliance on debt to finance its operations and investments relative to its capital structure. The ratio increased from 0.57 in 2019 to 0.62 in 2023. This suggests that the company's proportion of debt, as a component of its total capital (debt plus equity), has been steadily rising.

A rising debt-to-capital ratio may indicate that Duke Energy Corp. is taking on more financial leverage, which can lead to higher interest expenses and increased financial risk. It could also imply that the company is looking to finance expansion, acquisitions, or capital expenditures through debt financing rather than equity.

However, it is important to note that a higher debt-to-capital ratio does not necessarily imply financial distress, as it depends on the company's ability to service the debt and generate sufficient cash flows. Investors should further analyze Duke Energy Corp.'s debt maturity profile, interest coverage ratio, and overall financial health to gain a comprehensive understanding of its debt management strategy and financial stability.