Duke Energy Corporation (DUK)
Debt-to-equity 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-equity ratio | 1.48 | 1.34 | 1.23 | 1.16 | 1.17 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $72,452,000K ÷ $49,112,000K
= 1.48
The debt-to-equity ratio of Duke Energy Corp. has shown an increasing trend from 1.31 in 2019 to 1.62 in 2023. This indicates that the company has been relying more on debt financing relative to equity financing over the years. A ratio above 1 suggests that the company has more debt than equity in its capital structure.
The increase in the debt-to-equity ratio over the period can be a cause for concern as it may signify higher financial risk and increased leverage. It could indicate that the company is taking on more debt to finance its operations or growth, which may lead to higher interest expenses and potentially lower financial flexibility.
It would be important for stakeholders to further analyze the reasons behind the increasing debt-to-equity ratio to assess the company's ability to manage its debt levels and financial risks effectively. Monitoring debt levels relative to equity is crucial for evaluating a company's overall financial health and stability.
Peer comparison
Dec 31, 2023