FirstEnergy Corporation (FE)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 10,437,000 | 10,166,000 | 8,675,000 | 7,237,000 | 6,975,000 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $10,437,000K)
= 0.00
The debt-to-capital ratio of Firstenergy Corp. has shown a fluctuating trend over the past five years. In 2023, the ratio stood at 0.70, reflecting a slight increase from the previous year. This ratio indicates that 70% of the company's capital structure is funded through debt, while the remaining 30% is funded through equity.
Comparing to previous years, the company's debt-to-capital ratio was slightly lower in 2022 at 0.68, signifying a lower proportion of debt in the capital structure. However, in 2021 and 2020, the ratio increased to 0.73 and 0.77, respectively, indicating a higher reliance on debt financing during those years.
In 2019, the ratio was at 0.75, showing a similar level of debt utilization as in 2020. This indicates that the company has been managing its debt levels relative to its capital structure over the years, with some fluctuations.
Overall, the trend in the debt-to-capital ratio of Firstenergy Corp. suggests a varying approach to debt financing, with the company balancing between debt and equity to fund its operations and investments. It's essential for investors and stakeholders to monitor these changes in the ratio to assess the company's financial leverage and risk profile.
Peer comparison
Dec 31, 2023