Eversource Energy (ES)
Solvency ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 3.96 | 2.17 | 3.94 | 3.94 | 3.92 | 3.59 | 3.51 | 3.44 | 3.44 | 3.38 | 3.32 | 3.32 | 3.32 | 3.33 | 3.30 | 3.27 | 3.28 | 3.11 | 3.05 | 3.15 |
The solvency ratios of Eversource Energy, including the Debt-to-Assets Ratio, Debt-to-Capital Ratio, Debt-to-Equity Ratio, and Financial Leverage Ratio, provide insights into the company's financial health and leverage position.
1. Debt-to-Assets Ratio: This ratio measures the proportion of a company's assets financed by debt. Eversource Energy's Debt-to-Assets ratio has consistently remained at 0.00 over the years, indicating that the company has not relied heavily on debt to fund its assets.
2. Debt-to-Capital Ratio: The Debt-to-Capital ratio signifies the percentage of a company's capital that is financed by debt. Eversource Energy has also maintained a Debt-to-Capital ratio of 0.00 consistently, suggesting a low level of debt relative to its capital structure.
3. Debt-to-Equity Ratio: The Debt-to-Equity ratio reflects the degree of financial leverage and risk borne by shareholders. Eversource Energy's Debt-to-Equity ratio has remained at 0.00, indicating that the company's financial structure is not reliant on debt financing.
4. Financial Leverage Ratio: This ratio compares the company's total assets to its equity, measuring the extent to which debt is used in financing assets. Eversource Energy's Financial Leverage Ratio has fluctuated over time, increasing from 3.15 in March 2020 to a peak of 3.96 in December 2024, with some fluctuations in between. However, the ratio then decreased significantly to 2.17 by September 30, 2024, suggesting a possibly reduced reliance on debt to support asset growth or operations.
Overall, based on the solvency ratios analyzed, Eversource Energy has maintained a conservative debt structure, with low debt levels in relation to its assets, capital, and equity. The fluctuations in the Financial Leverage Ratio indicate some variability in the company's leverage position, but the overall trend suggests a cautious approach to debt management and capital structure.
Coverage ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 2.12 | 0.75 | 1.17 | 0.74 | 0.68 | 2.91 | 3.13 | 3.74 | 3.82 | 3.80 | 3.79 | 3.80 | 3.70 | 3.75 | 3.96 | 3.98 | 3.90 | 3.89 | 3.79 | 3.30 |
The interest coverage ratio for Eversource Energy has shown fluctuations over the reported periods, with a general trend of moderate to strong coverage. The ratio ranged between 2.91 and 3.98, indicating the company's ability to meet its interest obligations comfortably. However, towards the end of the period, there was a notable decline in the ratio, dropping to 0.68 by December 31, 2023, and then recovering slightly in the following periods. This decline may suggest a potential strain on Eversource Energy's ability to cover interest payments with its operating income. Overall, monitoring the trend of the interest coverage ratio is crucial to assess the company's financial health and its ability to service its debt obligations effectively.