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