Duke Energy Corporation (DUK)
Debt-to-capital ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 72,452,000 | 71,353,000 | 69,914,000 | 69,107,000 | 65,873,000 | 66,060,000 | 63,147,000 | 62,196,000 | 60,448,000 | 57,929,000 | 57,410,000 | 54,768,000 | 55,625,000 | 56,049,000 | 56,143,000 | 56,311,000 | 54,985,000 | 54,818,000 | 54,342,000 | 53,681,000 |
| Total stockholders’ equity | US$ in thousands | 49,112,000 | 49,006,000 | 48,333,000 | 49,260,000 | 49,322,000 | 50,345,000 | 49,720,000 | 49,446,000 | 49,296,000 | 49,307,000 | 48,132,000 | 48,186,000 | 47,964,000 | 46,006,000 | 45,484,000 | 46,921,000 | 46,822,000 | 46,438,000 | 45,213,000 | 45,030,000 |
| Debt-to-capital ratio | 0.60 | 0.59 | 0.59 | 0.58 | 0.57 | 0.57 | 0.56 | 0.56 | 0.55 | 0.54 | 0.54 | 0.53 | 0.54 | 0.55 | 0.55 | 0.55 | 0.54 | 0.54 | 0.55 | 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
The debt-to-capital ratio of Duke Energy Corp. has shown a consistent upward trend over the past eight quarters, increasing from 0.58 in Q1 2022 to 0.62 in Q4 2023. This indicates that the company's level of debt relative to its total capital has been gradually rising.
A debt-to-capital ratio of 0.62 means that debt represents 62% of the company's total capital structure, while the remaining 38% is represented by equity. This suggests that Duke Energy Corp. relies heavily on debt to finance its operations and investments.
The gradual increase in the debt-to-capital ratio may indicate that the company is taking on more debt to fund its expansion or capital expenditure projects. While moderate levels of debt can be beneficial for leverage and growth, a high debt-to-capital ratio can lead to increased financial risk and potential difficulties in meeting debt obligations in the future.
Overall, stakeholders and investors should closely monitor Duke Energy Corp.'s debt levels and assess the company's ability to manage and service its debt in a sustainable manner.
Peer comparison
Dec 31, 2023