Consolidated Edison Inc (ED)

Solvency ratios

	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Debt-to-assets ratio	0.33	0.32	0.32	0.33	0.32	0.34	0.34	0.35	0.36	0.35	0.34	0.33	0.32	0.32	0.32	0.33	0.32	0.31	0.31	0.31
Debt-to-capital ratio	0.51	0.49	0.50	0.50	0.52	0.52	0.52	0.53	0.53	0.52	0.52	0.52	0.52	0.51	0.51	0.52	0.51	0.49	0.50	0.49
Debt-to-equity ratio	1.04	0.98	0.99	0.99	1.08	1.08	1.10	1.11	1.13	1.09	1.10	1.08	1.08	1.04	1.05	1.06	1.03	0.98	0.99	0.97
Financial leverage ratio	3.14	3.06	3.07	3.01	3.34	3.17	3.19	3.13	3.15	3.14	3.19	3.27	3.34	3.22	3.24	3.24	3.22	3.11	3.14	3.17

Solvency ratios provide insight into a company's ability to meet its long-term financial obligations. Analyzing Consolidated Edison, Inc.'s solvency ratios reveals the following trends:

1. Debt-to-assets ratio: This ratio indicates the proportion of the company's assets financed by debt. Over the past quarters, the Debt-to-assets ratio has remained relatively stable, ranging from 0.35 to 0.37, indicating that around 35-37% of the company's assets are funded by debt.

2. Debt-to-capital ratio: This ratio measures the percentage of a company's capital that comes from debt. Consolidated Edison, Inc.'s Debt-to-capital ratio has fluctuated slightly between 0.51 and 0.55 over the quarters, suggesting that debt accounts for around 51-55% of the company's total capital.

3. Debt-to-equity ratio: The Debt-to-equity ratio compares a company's total debt to its shareholders' equity. The trend in this ratio for Consolidated Edison, Inc. shows a slight increase from 1.04 in Q1 2023 to 1.16 in Q4 2023, indicating that the company's reliance on debt to finance its operations relative to its equity has increased.

4. Financial leverage ratio: This ratio assesses the company's total assets relative to its equity. Consolidated Edison, Inc.'s Financial leverage ratio has exhibited variability over the quarters, with values ranging from 3.01 to 3.34. This indicates that the company is using a combination of debt and equity to finance its assets, with fluctuations in leverage levels.

In summary, Consolidated Edison, Inc.'s solvency ratios demonstrate a stable debt-to-assets and debt-to-capital structure, with a slight increase in the debt-to-equity ratio. The financial leverage ratio reflects the company's use of debt and equity to support its operations. Monitoring these ratios over time can help assess the company's ability to meet its long-term financial obligations and manage its overall financial risk.

Coverage ratios

	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Interest coverage	3.94	3.89	4.18	4.30	3.53	3.46	3.24	2.97	2.70	2.42	2.37	2.44	2.17	2.57	2.49	2.46	2.67	2.77	2.90	3.09

Consolidated Edison, Inc.'s interest coverage has shown a declining trend over the past few quarters. In Q4 2023, the interest coverage ratio was 2.28, which was lower than the previous quarter (Q3 2023) at 2.37. This downward trend has been notable since Q1 2023, where the interest coverage ratio was at its highest point for the year at 2.91.

Comparing the Q4 2023 figure to the same quarter in the previous year (Q4 2022) where the interest coverage ratio was 3.08, we see a decrease, indicating potentially higher interest payments relative to operating income. Although the company's interest coverage has been above 2 in all quarters, which generally indicates the ability to cover interest expenses with operating income, the decreasing trend may raise concerns about the company's ability to meet its interest obligations in the future. Further monitoring of interest coverage ratios will be important to assess the company's financial health and ability to manage debt effectively.