FirstEnergy Corporation (FE)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 |
FirstEnergy Corporation's solvency ratios indicate a strong financial position in terms of its ability to meet its long-term obligations:
1. Debt-to-assets ratio: The ratio has consistently been reported as 0.00 across all periods provided, indicating that the company has no debt on its balance sheet relative to its total assets. This suggests a low level of financial risk as the company is not highly leveraged.
2. Debt-to-capital ratio: Similar to the debt-to-assets ratio, the debt-to-capital ratio has also remained at 0.00 for all reporting periods. This reiterates that FirstEnergy Corporation has not relied heavily on debt to finance its operations compared to its total capital.
3. Debt-to-equity ratio: As with the previous ratios, the debt-to-equity ratio has consistently been recorded as 0.00 throughout the data provided. This reaffirms that the company's equity has fully covered its debt obligations, reflecting a healthy capital structure.
4. Financial leverage ratio: The financial leverage ratio has shown a decreasing trend over the reporting periods, declining from 6.18 in March 2020 to 4.18 in December 2024. This reduction indicates that the company has been effectively decreasing its reliance on debt to finance its operations, thereby improving its solvency and financial stability.
In conclusion, the solvency ratios of FirstEnergy Corporation demonstrate a solid financial standing with minimal debt levels and improving leverage ratios over time. This suggests that the company is well-equipped to meet its long-term financial commitments and indicates a lower risk of financial distress.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 2.59 | 2.44 | 2.27 | 2.43 | 2.47 | 2.65 | 2.68 | 2.60 | 2.49 | 2.53 | 2.54 | 2.43 | 2.51 | 2.26 | 2.33 | 2.56 | 2.13 | 1.68 | 1.62 | 1.68 |
The interest coverage ratio for FirstEnergy Corporation has shown a fluctuating trend over the past five years, ranging from a low of 1.62 in June 2020 to a high of 2.68 in June 2023. This ratio measures the company's ability to meet its interest payments on outstanding debt obligations.
Overall, there has been an improvement in the interest coverage ratio from 2020 to 2024, indicating the company's enhanced ability to cover its interest expenses with its operating income. The ratio peaked at 2.68 in June 2023, suggesting a strong capacity to pay off interest costs comfortably.
However, there was a slight decline in the interest coverage ratio in the most recent periods, dropping to 2.27 in June 2024 from the peak of 2.68 in June 2023. This decrease could indicate a potential strain on the company's ability to cover interest payments with its earnings.
It is important for investors and stakeholders to monitor FirstEnergy Corporation's interest coverage ratio closely to assess the company's financial health and ability to manage its debt obligations effectively.