Consolidated Edison Inc (ED)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.05 | 3.14 | 3.34 | 3.15 | 3.34 |
Consolidated Edison Inc's solvency ratios paint a picture of strong financial stability and low risk of insolvency. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have all consistently remained at 0.00 over the past five years, indicating that the company is not heavily reliant on debt to finance its operations and investments.
Moreover, the Financial leverage ratio has displayed a declining trend from 3.34 in 2020 to 1.05 in 2024. This suggests that the company has been effectively managing its debt levels relative to its equity, with a decreasing reliance on debt financing over time.
Overall, based on these solvency ratios, Consolidated Edison Inc appears to have a strong financial position with minimal debt obligations and a conservative leverage structure, which bodes well for its long-term financial health and sustainability.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 2.80 | 3.94 | 3.13 | 2.92 | 2.41 |
Consolidated Edison Inc's interest coverage has shown a generally improving trend over the years. The interest coverage ratio, which reflects the company's ability to cover its interest expenses with operating income, was 2.41 as of December 31, 2020.
By December 31, 2021, the ratio had increased to 2.92, indicating a strengthening ability to meet interest obligations. This positive trend continued as of December 31, 2022, with the ratio further improving to 3.13.
In the following year, as of December 31, 2023, the interest coverage ratio rose to 3.94, reaching its peak in the observed period. This indicates the company's increasing capacity to cover interest expenses with its operating income.
However, by December 31, 2024, the interest coverage ratio dipped slightly to 2.80. While this decrease may raise some concerns, it's important to consider the overall upward trajectory exhibited in the preceding years, reflecting a generally stable financial position in managing interest obligations.