Exelon Corporation (EXC)
Financial leverage ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 101,546,000 | 99,259,000 | 98,080,000 | 96,925,000 | 95,349,000 | 93,455,000 | 92,295,000 | 92,698,000 | 133,013,000 | 132,621,000 | 129,396,000 | 130,000,000 | 129,317,000 | 127,767,000 | 126,313,000 | 124,677,000 | 124,977,000 | 122,738,000 | 121,596,000 | 121,593,000 |
| Total stockholders’ equity | US$ in thousands | 25,755,000 | 25,470,000 | 25,079,000 | 25,066,000 | 24,744,000 | 24,582,000 | 23,656,000 | 23,491,000 | 34,393,000 | 33,851,000 | 32,140,000 | 32,015,000 | 32,585,000 | 32,884,000 | 32,703,000 | 32,482,000 | 32,224,000 | 32,023,000 | 31,548,000 | 31,357,000 |
| Financial leverage ratio | 3.94 | 3.90 | 3.91 | 3.87 | 3.85 | 3.80 | 3.90 | 3.95 | 3.87 | 3.92 | 4.03 | 4.06 | 3.97 | 3.89 | 3.86 | 3.84 | 3.88 | 3.83 | 3.85 | 3.88 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $101,546,000K ÷ $25,755,000K
= 3.94
Exelon Corp.'s financial leverage ratio has shown some fluctuation over the past eight quarters, ranging from 3.80 to 3.95. The ratio indicates that the company relies heavily on debt financing to support its operations and growth initiatives. A higher financial leverage ratio suggests a higher degree of financial risk due to the increased reliance on debt, which can magnify the impact of changes in operating performance on the company's profitability and solvency.
The upward trend in the financial leverage ratio from Q1 2022 to Q4 2023 indicates a potential increase in the company's debt levels relative to its equity. This could be due to strategic decisions to fund investments, acquisitions, or expansions through borrowing. Investors and creditors should closely monitor this trend to assess the company's ability to generate sufficient cash flows to meet its debt obligations and manage the associated risks. Additionally, changes in the financial leverage ratio could impact the company's credit rating and cost of capital.
Peer comparison
Dec 31, 2023