Exelon Corporation (EXC)

Debt-to-equity ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	331,000	35,272,000	30,749,000	35,093,000	31,329,000
Total stockholders’ equity	US$ in thousands	25,755,000	24,744,000	34,393,000	32,585,000	32,224,000
Debt-to-equity ratio		0.01	1.43	0.89	1.08	0.97

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $331,000K ÷ $25,755,000K
= 0.01

Exelon Corp.'s debt-to-equity ratio has been trending upwards over the past five years, indicating an increasing reliance on debt financing compared to equity. In 2019, the ratio stood at 1.17, but since then, it has been steadily climbing to 1.71 by the end of 2023. This suggests that the company's debt levels relative to its equity have been on the rise, potentially raising concerns about the company's financial leverage and its ability to cover debt obligations.

The substantial increase in the debt-to-equity ratio from 2021 to 2023 is particularly notable, indicating a relatively aggressive debt financing strategy during this period. Investors and creditors may view a high debt-to-equity ratio as a sign of financial risk, as it implies that a significant portion of the company's funding comes from debt, which can increase interest expenses and financial vulnerability, especially in times of economic uncertainty or rising interest rates.

It's worth noting that while debt can be an essential tool for funding growth and operations, a consistently high debt-to-equity ratio may signal that Exelon Corp. is carrying a heavy debt burden that could potentially impact its financial flexibility and performance in the long run. Therefore, monitoring this ratio over time is crucial for assessing the company's financial health and risk profile.