Consolidated Edison Inc (ED)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 66,331,000 | 69,065,000 | 63,116,000 | 62,895,000 | 58,079,000 |
| Total stockholders’ equity | US$ in thousands | 21,158,000 | 20,687,000 | 20,037,000 | 18,847,000 | 18,022,000 |
| Financial leverage ratio | 3.14 | 3.34 | 3.15 | 3.34 | 3.22 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $66,331,000K ÷ $21,158,000K
= 3.14
The financial leverage ratio of Consolidated Edison, Inc. has shown fluctuations over the past five years. The ratio decreased from 3.34 in 2019 to 3.15 in 2021 before increasing to 3.34 again in 2022. By the end of 2023, the ratio stood at 3.14.
A financial leverage ratio of above 1 indicates that the company relies more on debt financing than equity financing. A higher ratio suggests higher financial risk due to higher levels of debt.
The fluctuations in Consolidated Edison's financial leverage ratio over the years may indicate varying strategies in terms of capital structure and financing decisions. It would be important for investors and stakeholders to closely monitor this ratio to assess the company's ability to meet its debt obligations and sustain its financial health over time.
Peer comparison
Dec 31, 2023