Alliant Energy Corp (LNT)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.39 | 0.38 | 0.36 | 0.38 | 0.33 |
| Debt-to-capital ratio | 0.55 | 0.55 | 0.53 | 0.54 | 0.52 |
| Debt-to-equity ratio | 1.21 | 1.22 | 1.12 | 1.19 | 1.06 |
| Financial leverage ratio | 3.13 | 3.21 | 3.10 | 3.11 | 3.21 |
Alliant Energy Corp.'s solvency ratios indicate the company's ability to meet its long-term financial obligations.
The debt-to-assets ratio has been gradually increasing over the last five years, reaching 0.45 in 2023. This suggests that 45% of the company's total assets are financed by debt.
The debt-to-capital ratio has remained relatively stable at around 0.58 over the same period. This ratio indicates that 58% of the company's capital structure is comprised of debt.
The debt-to-equity ratio has shown an increasing trend, reaching 1.40 in 2023. This ratio indicates that the company's creditors finance 1.40 times more of its operations than its equity shareholders.
The financial leverage ratio, which measures the extent to which the company relies on debt in its capital structure, has fluctuated over the years, with a slight decrease in 2023 to 3.13. This suggests that the company has a leverage of approximately 3.13 times.
Overall, the increasing trends in the debt-to-assets and debt-to-equity ratios, combined with a stable debt-to-capital ratio, indicate a higher level of leverage and reliance on debt financing for Alliant Energy Corp.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 2.79 | 3.18 | 3.17 | 3.06 | 3.33 |
The interest coverage ratio for Alliant Energy Corp. has exhibited slight fluctuations over the five-year period from 2019 to 2023, ranging from a low of 2.55 in 2023 to a high of 3.09 in 2021. The interest coverage ratio indicates the company's ability to cover its interest obligations with its operating income. A higher interest coverage ratio suggests that the company is more capable of meeting its interest payments from its earnings.
The declining trend in the interest coverage ratio from 2021 to 2023 may raise concerns about the company's ability to cover its interest expenses in the future. Further analysis of the company's financial health and profitability is necessary to understand the factors contributing to the fluctuations in the interest coverage ratio and to evaluate the sustainability of the company's debt repayment capacity.