Eversource Energy (ES)

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	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-equity ratio		1.66	1.27	1.17	1.08	1.09

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $23,588,600K ÷ $14,173,900K
= 1.66

The debt-to-equity ratio of Eversource Energy has been increasing over the past five years. The ratio was 1.23 at the end of 2019, showing a gradual upward trend to 1.28 in 2020, 1.38 in 2021, 1.48 in 2022, and reaching 1.89 by the end of 2023.

This suggests that the company has been relying more on debt financing relative to its equity over the years. A higher debt-to-equity ratio could indicate that Eversource Energy has been taking on more debt to fund its operations or expansion projects.

It is important to closely monitor this trend as a significantly high debt-to-equity ratio may signal increased financial leverage and potential risks associated with debt repayment obligations. Investors and analysts may want to assess the company's ability to manage and service its debt levels effectively in relation to its equity position.