Evergy, Inc. (EVRG)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 32,282,100 | 32,244,200 | 29,489,900 | 28,520,500 | 27,114,800 |
| Total stockholders’ equity | US$ in thousands | 9,807,800 | 9,663,100 | 9,483,700 | 9,244,400 | 8,733,400 |
| Financial leverage ratio | 3.29 | 3.34 | 3.11 | 3.09 | 3.10 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $32,282,100K ÷ $9,807,800K
= 3.29
The financial leverage ratio for Evergy, Inc. has remained relatively stable over the past few years, ranging between 3.09 and 3.34. This ratio indicates that the company relies on debt financing to a significant extent to fund its operations and growth. A higher financial leverage ratio suggests higher financial risk, as the company has a larger proportion of debt in its capital structure compared to equity. It is important for Evergy, Inc. to carefully manage its debt levels to avoid potential financial distress or constraints in the future. The stable trend in the financial leverage ratio indicates a degree of consistency in the company's financing strategy, but it is crucial for management to monitor and assess the impact of debt on the overall financial health and sustainability of the business.
Peer comparison
Dec 31, 2024