Evergy, Inc. (EVRG)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 3.29 | 3.34 | 3.11 | 3.09 | 3.10 |
Evergy, Inc. maintains a strong solvency position as indicated by its consistently low debt-to-assets, debt-to-capital, and debt-to-equity ratios, all of which have been recorded as 0.00 from 2020 to 2024. These ratios suggest that the company has minimal debt relative to its assets, capital, and equity, implying a low level of financial risk.
On the other hand, the financial leverage ratio, which measures the company's level of debt relative to equity, shows a slight increase over the years from 3.10 in 2020 to 3.29 in 2024. While the increase indicates a higher reliance on debt financing compared to equity financing, the ratio remains at a moderate level, suggesting that Evergy's financial structure is still stable and not overly leveraged.
Overall, based on these solvency ratios, Evergy, Inc. appears to have a healthy financial position with a conservative capital structure and a manageable level of debt, highlighting its ability to meet its financial obligations and withstand economic challenges.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 2.61 | 2.26 | 2.99 | 3.67 | 2.87 |
Based on the provided data, Evergy, Inc.'s interest coverage has shown variations over the years.
- In December 31, 2020, the interest coverage ratio was 2.87, indicating that the company generated operating profit that was nearly three times its interest expense. This level suggests a moderate ability to cover interest payments.
- By December 31, 2021, the interest coverage ratio improved to 3.67, reflecting a stronger ability to meet interest obligations from operating income.
- However, in December 31, 2022, the interest coverage ratio decreased to 2.99, although it remained above the level reported in 2020. This decrease may indicate a slight decrease in the company's ability to cover interest expenses.
- By December 31, 2023, the interest coverage ratio dropped further to 2.26, which could be a cause for concern as the company might be having difficulties in covering its interest expenses with its operating income.
- In the latest year, December 31, 2024, the interest coverage ratio slightly improved to 2.61. This shows that while the company's ability to cover its interest payments improved from the previous year, it is still lower than the levels seen in 2021 and 2020.
Overall, Evergy, Inc.'s interest coverage ratios have fluctuated over the years, with some years showing stronger ability to cover interest expenses than others. It is important for the company to maintain a healthy interest coverage ratio to ensure financial stability and ability to meet debt obligations.