Consolidated Edison Inc (ED)

Consolidated Edison, Inc.'s solvency ratios provide insights into the company's long-term financial stability and its ability to meet its long-term obligations.

The debt-to-assets ratio has shown some fluctuation but has generally been within an acceptable range, ranging from 0.35 to 0.39 over the past five years. This ratio indicates that, on average, around 35% to 39% of the company's assets have been funded through debt, with the rest financed through equity.

The debt-to-capital ratio has remained quite stable, hovering around 0.54 to 0.56 over the same period. This ratio signifies that approximately 54% to 56% of the company's capital structure consists of debt.

The debt-to-equity ratio has shown some variation, ranging from 1.15 to 1.29 over the past five years. This ratio has been higher compared to the debt-to-assets and debt-to-capital ratios, indicating that the company's creditors have a higher claim on its assets than its shareholders.

The financial leverage ratio, which reflects the ratio of a company's total assets to its equity capital, has also fluctuated over the years, ranging from 3.14 to 3.34. This ratio suggests that the company has been using debt to finance a significant portion of its assets, with a higher financial leverage ratio indicating higher financial risk.

Overall, while Consolidated Edison, Inc. has maintained relatively stable solvency ratios over the past five years, with its debt levels being within reasonable limits, it is important for the company to monitor these ratios closely to ensure that its long-term debt obligations are sustainable and manageable.

---

Coverage ratios

Interest coverage ratio is a financial metric that indicates a company's ability to meet its interest obligations on outstanding debt. A higher interest coverage ratio suggests a stronger ability to cover interest expenses.

The interest coverage ratio of Consolidated Edison, Inc. has been fluctuating over the past five years. In 2023, the interest coverage ratio decreased to 2.28 from 3.08 in 2022, indicating a lower ability to cover interest expenses compared to the previous year. Despite the decrease in 2023, the ratio remained above 1, indicating that the company is still generating enough earnings to cover its interest payments.

Looking at the trend over the five-year period, the interest coverage ratio has generally remained above 2, indicating a reasonable ability to cover interest expenses. However, it is important to note the minor fluctuations in the ratio, which may be influenced by changes in the company's earnings, interest expenses, or a combination of both.

Overall, based on the historical data, Consolidated Edison, Inc. has maintained adequate interest coverage levels, but investors and lenders may want to monitor the trend closely to ensure the company continues to generate sufficient earnings to meet its interest obligations.