Eversource Energy (ES)
Debt-to-equity ratio
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 | ||
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Long-term debt | US$ in thousands | 23,588,600 | 22,087,300 | 21,772,000 | 20,562,600 | 19,724,000 | 19,832,000 | 19,583,800 | 17,912,500 | 17,023,600 | 17,420,300 | 15,851,400 | 14,782,700 | 15,125,900 | 14,736,300 | 13,697,800 | 13,898,600 | 13,770,800 | 13,440,200 | 13,039,200 | 12,284,300 |
Total stockholders’ equity | US$ in thousands | 14,173,900 | 15,685,900 | 15,554,100 | 15,749,400 | 15,473,200 | 15,279,200 | 15,057,200 | 14,836,700 | 14,599,800 | 14,411,600 | 14,311,900 | 14,233,400 | 14,063,600 | 13,980,000 | 13,805,300 | 13,210,000 | 12,630,000 | 12,121,600 | 11,954,600 | 11,637,400 |
Debt-to-equity ratio | 1.66 | 1.41 | 1.40 | 1.31 | 1.27 | 1.30 | 1.30 | 1.21 | 1.17 | 1.21 | 1.11 | 1.04 | 1.08 | 1.05 | 0.99 | 1.05 | 1.09 | 1.11 | 1.09 | 1.06 |
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 shown a general increase over the past eight quarters, indicating a higher reliance on debt compared to equity in funding its operations and investments. The ratio has risen from 1.41 in Q1 2022 to 1.89 in Q4 2023, with fluctuations in between. This trend suggests a potential increase in financial leverage and risk, as higher debt levels typically imply higher interest payments and financial obligations. However, it is essential to consider the industry norms and the company's overall financial health and capacity to service its debt obligations when evaluating the significance of these changes in the debt-to-equity ratio.
Peer comparison
Dec 31, 2023