FirstEnergy Corporation (FE)
Financial leverage ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 48,767,000 | 47,471,000 | 47,065,000 | 46,479,000 | 46,108,000 | 44,851,000 | 45,120,000 | 44,617,000 | 45,432,000 | 43,854,000 | 44,363,000 | 44,117,000 | 44,464,000 | 42,938,000 | 42,403,000 | 42,090,000 | 42,301,000 | 41,506,000 | 40,884,000 | 40,490,000 |
| Total stockholders’ equity | US$ in thousands | 10,437,000 | 10,474,000 | 10,510,000 | 10,253,000 | 10,166,000 | 10,774,000 | 10,858,000 | 8,755,000 | 8,675,000 | 7,479,000 | 7,430,000 | 7,360,000 | 7,237,000 | 7,188,000 | 7,143,000 | 6,814,000 | 6,975,000 | 7,272,000 | 7,269,000 | 6,932,000 |
| Financial leverage ratio | 4.67 | 4.53 | 4.48 | 4.53 | 4.54 | 4.16 | 4.16 | 5.10 | 5.24 | 5.86 | 5.97 | 5.99 | 6.14 | 5.97 | 5.94 | 6.18 | 6.06 | 5.71 | 5.62 | 5.84 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $48,767,000K ÷ $10,437,000K
= 4.67
Based on the data provided, the financial leverage ratio of Firstenergy Corp. has shown fluctuations over the past eight quarters. The financial leverage ratio measures the extent to which the company is using debt to finance its operations and investments. A higher financial leverage ratio indicates a greater reliance on debt financing.
In Q1 2022, the financial leverage ratio spiked to 5.10, suggesting a significant increase in debt relative to equity in the company's capital structure. This was followed by a slight decrease in Q2 2022 to 4.16, where the ratio remained constant in Q3 2022. However, in Q4 2022, there was an increase to 4.54, indicating a higher level of debt compared to equity.
Throughout the first three quarters of 2023, the financial leverage ratio hovered around the 4.50 mark, with Q4 2023 showing a slight increase to 4.67. This indicates that the company's reliance on debt has been relatively consistent during this period.
Overall, it is essential for investors and analysts to closely monitor Firstenergy Corp.'s financial leverage ratio to assess the company's risk exposure and financial health, as high levels of debt can increase financial risk and impact profitability and sustainability in the long term.
Peer comparison
Dec 31, 2023