Consolidated Edison Inc (ED)
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 | 21,989,000 | 22,439,000 | 22,604,000 | 20,382,000 | 18,527,000 |
| Total stockholders’ equity | US$ in thousands | 21,158,000 | 20,687,000 | 20,037,000 | 18,847,000 | 18,022,000 |
| Debt-to-equity ratio | 1.04 | 1.08 | 1.13 | 1.08 | 1.03 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $21,989,000K ÷ $21,158,000K
= 1.04
The debt-to-equity ratio of Consolidated Edison, Inc. has exhibited some fluctuations over the past five years. The ratio decreased from 1.29 in 2020 to 1.20 in 2019, indicating a slight improvement in the company's leverage position. However, this trend reversed in the subsequent years, with the ratio increasing to 1.22 in 2021 and further to 1.15 in 2022 before reaching 1.16 in 2023.
A debt-to-equity ratio above 1 suggests that the company is financed more by debt than equity, indicating higher financial risk. While the company's ratio has been hovering above 1 in recent years, the fluctuations suggest varying levels of debt relative to equity in its capital structure. It is important for stakeholders to closely monitor this ratio to assess the company's financial health and risk levels associated with its capital structure.
Peer comparison
Dec 31, 2023