FirstEnergy Corporation (FE)
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 | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 10,437,000 | 10,166,000 | 8,675,000 | 7,237,000 | 6,975,000 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $10,437,000K
= 0.00
The debt-to-equity ratio of Firstenergy Corp. has shown a fluctuating trend over the past five years. In 2023, the ratio stands at 2.39, increasing from the previous year's ratio of 2.13. This suggests that the company's level of leverage has increased, as more debt is being used to finance its operations compared to equity.
Comparing the current ratio to earlier years, it appears that Firstenergy Corp. has been actively managing its debt levels. The ratio was at its lowest in 2022 at 2.13, indicating a more conservative approach to debt usage. Conversely, in 2020, the ratio was at its highest at 3.38, indicating a significant reliance on debt financing at that time.
Overall, the trend in the debt-to-equity ratio suggests fluctuations in the company's capital structure and financing decisions over the years. It is important for investors and stakeholders to closely monitor these ratios to assess the company's risk exposure and financial health.
Peer comparison
Dec 31, 2023