FirstEnergy Corporation (FE)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 4.18 | 4.67 | 4.54 | 5.24 | 6.14 |
FirstEnergy Corporation demonstrates strong solvency based on its solvency ratios over the years. The Debt-to-assets ratio remained consistently low at 0.00 from December 31, 2020, to December 31, 2024, indicating that the company has minimal dependence on debt to finance its assets.
Similarly, the Debt-to-capital ratio and the Debt-to-equity ratio also stayed at 0.00 throughout the five-year period, showcasing the company's ability to operate with a healthy balance between debt and equity in its capital structure.
The Financial leverage ratio declined steadily from 6.14 on December 31, 2020, to 4.18 on December 31, 2024. This downward trend signifies a reduction in the company's reliance on debt financing and an improvement in its financial leverage position.
Overall, the solvency ratios portray FirstEnergy Corporation as a financially stable entity with a conservative approach towards debt management and a solid capital structure.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 2.49 | 2.46 | 2.56 | 2.51 | 2.19 |
The interest coverage ratio for FirstEnergy Corporation has shown a consistent improvement over the past five years. Starting at 2.19 in December 2020, it increased gradually to 2.51 by December 2021, further strengthening to 2.56 by December 2022. However, there was a slight dip to 2.46 in December 2023 before rebounding to 2.49 by December 2024.
Overall, the company's ability to cover its interest expenses has been relatively stable and adequate, staying above 2x throughout the period. This indicates that FirstEnergy has sufficient operating income to meet its interest obligations, which is a positive sign for creditors and investors.