Exelon Corporation (EXC)

Based on the solvency ratios of Exelon Corp., we can observe the following trends over the past five years:

1. Debt-to-assets ratio: Exelon Corp.'s debt-to-assets ratio has been relatively stable, hovering around 0.30 to 0.43. This ratio indicates that Exelon uses debt financing to fund approximately 30% to 43% of its total assets, with a slight increase in 2023 compared to the previous years.

2. Debt-to-capital ratio: The debt-to-capital ratio has also shown consistency, with values ranging from 0.54 to 0.63 over the past five years. This ratio reflects that debt represents around 54% to 63% of Exelon's total capital, indicating a moderate level of debt in its capital structure.

3. Debt-to-equity ratio: Exelon's debt-to-equity ratio has exhibited an upward trend over the analyzed period, starting at 1.17 in 2019 and increasing to 1.71 in 2023. This indicates that Exelon's proportion of debt in relation to equity has been rising, potentially signaling increased financial risk and reliance on debt financing.

4. Financial leverage ratio: The financial leverage ratio has shown some fluctuation but has generally remained around 3.85 to 3.97, indicating that Exelon has maintained high financial leverage levels over the past five years. This high ratio suggests that a significant portion of Exelon's assets are funded by debt, which can amplify both returns and risks.

Overall, while Exelon Corp. has maintained relatively stable debt levels in relation to its assets and capital, there has been a noticeable increase in the debt-to-equity ratio, signaling a growing reliance on debt financing and potentially heightened financial risk. Investors and stakeholders should monitor these solvency ratios closely to assess Exelon's ability to meet its debt obligations and manage its financial leverage effectively.

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Coverage ratios

Exelon Corp.'s interest coverage ratio has shown some fluctuations over the past five years. The ratio was 2.32 in 2023, a slight improvement from 2.29 in 2022. However, compared to the ratios of 1.60 in 2021 and 1.71 in 2020, the company's ability to cover its interest payments has strengthened. In 2019, the interest coverage ratio was higher at 2.57, indicating a stronger ability to cover interest expenses that year.

Overall, the trend in Exelon Corp.'s interest coverage ratio shows some variability, with the company experiencing periods of improvement and slight deterioration. It is essential for stakeholders to monitor this ratio closely to assess the company's ability to meet its interest obligations effectively.