Evergy, Inc. (EVRG)
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 | 3.24 | 9.43 | 3.28 | 3.24 | 3.34 | 3.14 | 3.18 | 3.13 | 3.11 | 3.04 | 3.14 | 3.11 | 3.09 | 3.02 | 3.12 | 3.18 | 3.10 | 3.05 | 3.07 | 3.07 |
The solvency ratios of Evergy, Inc. indicate a strong financial position with consistently low levels of debt relative to its assets, capital, and equity. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have all remained at 0.00 throughout the periods analyzed, suggesting that the company has no significant debt obligations compared to its total assets, capital structure, and equity.
The Financial leverage ratio, which measures the proportion of total assets that are financed by debt, shows a slight fluctuation over the years but generally remains within a reasonable range. The ratio increased from 3.07 in March 2020 to a peak of 9.43 in September 2024, which might indicate a temporary increase in leverage in that specific quarter. However, the ratio returned to a more stable level of around 3.24 by the end of December 2024.
Overall, the solvency ratios of Evergy, Inc. demonstrate a conservative financial strategy with a minimal reliance on debt financing, contributing to the company's solid solvency and financial stability.
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 | 2.61 | 2.58 | 2.38 | 2.36 | 2.43 | 2.35 | 2.70 | 2.90 | 2.99 | 3.33 | 3.46 | 3.47 | 3.67 | 3.64 | 3.38 | 3.25 | 2.89 | 4.03 | 4.11 | 4.13 |
Evergy, Inc.'s interest coverage ratio measures its ability to cover interest expenses with its earnings before interest and taxes (EBIT). The interest coverage ratio has shown some fluctuations over the period analyzed. It was relatively stable around 4 in the first half of 2020 but started to decline towards the end of the year, dropping to 2.89 by December 31, 2020.
Subsequently, there was a slight improvement in the ratio, reaching a peak of 3.67 by December 31, 2021. However, the ratio trended downwards again in the following periods, decreasing to 2.35 by September 30, 2023. The ratio remained relatively low through the end of 2024, with a ratio of 2.61 by December 31, 2024.
Overall, the declining trend in interest coverage from 2020 to 2024 may indicate that Evergy, Inc. could be experiencing challenges in generating sufficient earnings to cover its interest expenses. This may raise concerns about the company's financial health and ability to meet its debt obligations in the long term. It would be advisable for stakeholders and investors to closely monitor Evergy's financial performance and debt management strategies to ensure sustainability and financial stability in the future.