Eversource Energy (ES)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 55,612,200 | 53,230,900 | 48,492,100 | 46,099,600 | 41,123,900 |
| Total stockholders’ equity | US$ in thousands | 14,173,900 | 15,473,200 | 14,599,800 | 14,063,600 | 12,630,000 |
| Financial leverage ratio | 3.92 | 3.44 | 3.32 | 3.28 | 3.26 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $55,612,200K ÷ $14,173,900K
= 3.92
The financial leverage ratio of Eversource Energy has been gradually increasing over the past five years. It stood at 3.26 in 2019 and has since risen to 3.92 by the end of 2023. This indicates that the company's reliance on debt to finance its operations and growth has been on the rise over the period under consideration. A higher financial leverage ratio suggests that a larger proportion of the company's assets are financed through debt, which can amplify both returns and risks for the business. It is important for stakeholders to monitor this trend closely to assess the company's ability to manage its debt levels effectively and sustain its financial health in the long run.
Peer comparison
Dec 31, 2023