Duke Energy Corporation (DUK)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 186,343,000 | 176,893,000 | 178,086,000 | 169,587,000 | 162,388,000 |
| Total stockholders’ equity | US$ in thousands | 50,127,000 | 49,112,000 | 49,322,000 | 49,296,000 | 47,964,000 |
| Financial leverage ratio | 3.72 | 3.60 | 3.61 | 3.44 | 3.39 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $186,343,000K ÷ $50,127,000K
= 3.72
The financial leverage ratio of Duke Energy Corporation has shown a consistent increase over the years, rising from 3.39 in December 31, 2020 to 3.72 in December 31, 2024. This indicates that the company is relying more on debt financing relative to its equity to fund its operations and investments. A higher financial leverage ratio suggests higher financial risk as the company has a greater proportion of debt in its capital structure, potentially leading to increased interest payments and overall financial fragility. It is important for investors and stakeholders to closely monitor Duke Energy Corporation's ability to manage and service its debt levels effectively to ensure sustainable financial performance.
Peer comparison
Dec 31, 2024