Evergy Inc. Common Stock (EVRG)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 30,976,100 | 29,489,900 | 28,520,500 | 27,114,800 | 25,975,900 |
| Total stockholders’ equity | US$ in thousands | 9,663,100 | 9,483,700 | 9,244,400 | 8,733,400 | 8,571,900 |
| Financial leverage ratio | 3.21 | 3.11 | 3.09 | 3.10 | 3.03 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $30,976,100K ÷ $9,663,100K
= 3.21
Evergy Inc's financial leverage ratio has shown a gradual increase over the past five years, with values ranging from 3.03 in 2019 to 3.21 in 2023. This indicates that the company has been relying more on debt financing relative to its equity over time. A higher financial leverage ratio suggests increased financial risk as the company has a higher proportion of debt in its capital structure compared to equity. Investors and creditors may view this trend cautiously as it implies potential challenges in meeting debt obligations and interest payments. It is essential for Evergy Inc to carefully manage its debt levels and monitor its financial leverage ratio to maintain a healthy balance between debt and equity financing.
Peer comparison
Dec 31, 2023