FirstEnergy Corporation (FE)
Financial leverage ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 52,044,000 | 50,756,000 | 51,021,000 | 51,299,000 | 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 | 42,922,000 | 42,403,000 | 42,090,000 |
| Total stockholders’ equity | US$ in thousands | 12,455,000 | 12,427,000 | 12,474,000 | 12,397,000 | 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 |
| Financial leverage ratio | 4.18 | 4.08 | 4.09 | 4.14 | 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 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $52,044,000K ÷ $12,455,000K
= 4.18
FirstEnergy Corporation's financial leverage ratio has shown a declining trend from 6.18 as of March 31, 2020, to 4.18 as of December 31, 2024. This indicates that the company has been gradually reducing its reliance on debt to finance its operations and investments. A decreasing financial leverage ratio is generally considered positive as it signifies a lower level of financial risk and improved financial stability. However, it is important to note that a very low financial leverage ratio may also suggest underutilization of debt and the potential loss of tax benefits associated with debt financing. Overall, the decreasing trend in FirstEnergy Corporation's financial leverage ratio reflects a strategic shift towards a more balanced capital structure.
Peer comparison
Dec 31, 2024