Eversource Energy (ES)

Debt-to-assets ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	23,588,600	19,724,000	17,023,600	15,125,900	13,770,800
Total assets	US$ in thousands	55,612,200	53,230,900	48,492,100	46,099,600	41,123,900
Debt-to-assets ratio		0.42	0.37	0.35	0.33	0.33

December 31, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $23,588,600K ÷ $55,612,200K
= 0.42

The debt-to-assets ratio of Eversource Energy has shown a consistent upward trend over the past five years, increasing from 0.38 in 2019 to 0.48 in 2023. This indicates that the company's proportion of debt relative to its total assets has been gradually increasing over this period.

A higher debt-to-assets ratio suggests that a larger portion of the company's assets is financed through debt rather than equity. While higher leverage can amplify returns on investment in good times, it also increases financial risk and interest payments.

Eversource Energy's increasing debt-to-assets ratio can imply a higher level of financial leverage, possibly undertaken for strategic reasons such as funding growth initiatives or capital projects. It is crucial for investors and stakeholders to monitor this ratio to assess the company's ability to manage its debt obligations effectively and sustain its financial health in the long term.