Exelon Corporation (EXC)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 101,546,000 | 95,349,000 | 133,013,000 | 129,317,000 | 124,977,000 |
| Total stockholders’ equity | US$ in thousands | 25,755,000 | 24,744,000 | 34,393,000 | 32,585,000 | 32,224,000 |
| Financial leverage ratio | 3.94 | 3.85 | 3.87 | 3.97 | 3.88 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $101,546,000K ÷ $25,755,000K
= 3.94
The financial leverage ratio of Exelon Corp. has shown some fluctuation over the past five years. The ratio increased to 3.94 in 2023 from 3.85 in 2022, indicating a slight increase in financial leverage. This uptrend is a reversal of the previous year's decrease from 3.87 in 2021 to 3.85 in 2022.
Comparing to the baseline year of 2019, the financial leverage ratio in 2023 is slightly higher, at 3.94 compared to 3.88 in 2019. This suggests that Exelon Corp. has been relying more on debt financing relative to equity financing over the years, although the fluctuations have been relatively minor.
A financial leverage ratio above 1 indicates that the company is using more debt than equity to finance its operations, and a higher ratio implies higher financial risk due to the increased reliance on debt. Therefore, the trend of increasing financial leverage ratio for Exelon Corp. should be closely monitored to assess its impact on the company's financial risk and stability.
Peer comparison
Dec 31, 2023