FirstEnergy Corporation (FE)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 52,044,000 | 48,767,000 | 46,108,000 | 45,432,000 | 44,464,000 |
| Total stockholders’ equity | US$ in thousands | 12,455,000 | 10,437,000 | 10,166,000 | 8,675,000 | 7,237,000 |
| Financial leverage ratio | 4.18 | 4.67 | 4.54 | 5.24 | 6.14 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $52,044,000K ÷ $12,455,000K
= 4.18
The financial leverage ratio of FirstEnergy Corporation has been showing a declining trend over the past five years. Starting at 6.14 in December 31, 2020, the ratio decreased to 5.24 by December 31, 2021, and further decreased to 4.54 by December 31, 2022. There was a slight increase to 4.67 by December 31, 2023, followed by a decrease to 4.18 as of December 31, 2024. This declining trend indicates that the company has been reducing its reliance on debt to finance its operations and investments over the years, which could potentially lead to lower financial risk and improved solvency. However, it is important to assess the specific reasons behind these changes and consider other financial metrics to gain a more comprehensive understanding of FirstEnergy Corporation's overall financial health and stability.
Peer comparison
Dec 31, 2024