Eversource Energy (ES)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	14,173,900	15,473,200	14,599,800	14,063,600	12,630,000
Debt-to-capital ratio		0.62	0.56	0.54	0.52	0.52

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $23,588,600K ÷ ($23,588,600K + $14,173,900K)
= 0.62

The debt-to-capital ratio of Eversource Energy has shown a consistent upward trend over the past five years, increasing from 0.55 in 2019 to 0.65 in 2023. This indicates that the company has been relying more on debt financing relative to its total capital structure over this period.

A higher debt-to-capital ratio typically suggests that the company is more leveraged, meaning it has a higher proportion of debt in its capital structure compared to equity. While debt can be a cost-effective way to finance operations and growth, a high level of debt can also increase financial risk and interest expenses, potentially impacting the company's financial stability and flexibility.

It would be important for stakeholders and investors to monitor Eversource Energy's debt levels closely to ensure that the company can effectively manage its debt obligations and maintain a healthy balance between debt and equity financing. Additionally, it may be beneficial for the company to consider strategies to reduce its debt-to-capital ratio over time to mitigate potential risks associated with high leverage.