FirstEnergy Corporation (FE)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 48,767,000 | 46,108,000 | 45,432,000 | 44,464,000 | 42,301,000 |
| Total stockholders’ equity | US$ in thousands | 10,437,000 | 10,166,000 | 8,675,000 | 7,237,000 | 6,975,000 |
| Financial leverage ratio | 4.67 | 4.54 | 5.24 | 6.14 | 6.06 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $48,767,000K ÷ $10,437,000K
= 4.67
The financial leverage ratio of Firstenergy Corp. has exhibited fluctuations over the past five years. The ratio decreased from 6.06 in 2019 to 4.67 in 2023, indicating a reduction in financial leverage during this period. This downward trend suggests that the company has been relying less on debt to finance its operations and investments.
However, it is important to note that the financial leverage ratio increased in 2021 to 5.24 before decreasing again in 2022 and 2023. This fluctuation may indicate varying levels of debt usage and capital structure adjustments by Firstenergy Corp. during these years.
Overall, the decreasing trend in the financial leverage ratio signifies a potential improvement in the company's financial risk profile and a shift towards a more conservative capital structure approach in recent years. Monitoring this ratio over time can provide insights into Firstenergy Corp.'s debt management strategies and financial stability.
Peer comparison
Dec 31, 2023