Eversource Energy (ES)

Solvency ratios

	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
Debt-to-assets ratio	0.42	0.39	0.40	0.38	0.37	0.38	0.39	0.36	0.35	0.36	0.34	0.32	0.33	0.34	0.33	0.33	0.33	0.34	0.33	0.32
Debt-to-capital ratio	0.62	0.58	0.58	0.57	0.56	0.56	0.57	0.55	0.54	0.55	0.53	0.51	0.52	0.51	0.50	0.51	0.52	0.53	0.52	0.51
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
Financial leverage ratio	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	3.26	3.28	3.26	3.35

Eversource Energy's solvency ratios provide insight into the company's ability to meet its financial obligations and manage its debt levels.

The Debt-to-assets ratio has been relatively stable over the past eight quarters, ranging between 0.42 and 0.48. This ratio indicates that approximately 42% to 48% of Eversource Energy's assets are financed by debt.

The Debt-to-capital ratio has shown a gradual increase from 0.58 in Q1 2022 to 0.65 in Q4 2023. This ratio signals that debt accounts for around 58% to 65% of the company's total capital structure over the period.

The Debt-to-equity ratio exhibits a similar upward trend, rising from 1.41 in Q1 2022 to 1.89 in Q4 2023. This suggests that the company is increasingly relying on debt financing as opposed to equity to support its operations and growth initiatives.

The Financial leverage ratio, which reflects the proportion of a company's assets that are financed by debt, has also been on the rise, climbing from 3.32 in Q1 2022 to 3.92 in Q4 2023. This indicates that Eversource Energy's debt levels relative to its assets have been increasing over the past two years.

Overall, the increasing trends in the Debt-to-capital, Debt-to-equity, and Financial leverage ratios suggest that Eversource Energy's solvency position may be becoming more leveraged over time. It is essential for the company to carefully manage its debt levels to ensure financial stability and meet its obligations effectively.

Coverage ratios

	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
Interest coverage	2.64	2.86	3.07	3.68	3.75	3.80	3.79	3.80	3.70	3.75	3.96	3.98	3.90	3.88	3.77	3.28	3.23	3.21	3.17	3.69

The interest coverage ratio for Eversource Energy has exhibited a general downward trend over the past eight quarters, decreasing from 3.49 in Q1 2022 to 2.82 in Q4 2023. This may indicate a slight weakening in the company's ability to cover its interest expenses with its earnings. However, it is worth noting that the interest coverage ratio has remained above 2.0 in all quarters, which generally indicates that the company is still generating sufficient earnings to comfortably cover its interest obligations. Overall, while there has been a downward trend, the interest coverage ratios over the past eight quarters suggest that Eversource Energy is still able to meet its interest payments without significant difficulty.