Alliant Energy Corp (LNT)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 8,225,000 | 7,668,000 | 6,735,000 | 6,769,000 | 5,533,000 |
| Total assets | US$ in thousands | 21,237,000 | 20,163,000 | 18,553,000 | 17,710,000 | 16,701,000 |
| Debt-to-assets ratio | 0.39 | 0.38 | 0.36 | 0.38 | 0.33 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $8,225,000K ÷ $21,237,000K
= 0.39
The debt-to-assets ratio of Alliant Energy Corp. has been showing a generally increasing trend over the past five years, indicating a growing reliance on debt to finance its operations and investments. The ratio has increased from 0.39 in 2019 to 0.45 in 2023. This suggests that a higher proportion of the company's assets are funded by debt, which may increase the company's financial risk and interest expenses.
While a higher debt-to-assets ratio can potentially magnify returns on equity when the company is performing well, it also leaves Alliant Energy Corp. more vulnerable to financial distress during periods of economic downturn or rising interest rates. Investors and creditors alike may view a steadily increasing debt-to-assets ratio with caution, as it could signal a potential strain on the company's ability to meet its debt obligations in the long term.
It would be advisable for Alliant Energy Corp. to monitor and manage its debt levels effectively to strike a balance between leveraging debt for growth and maintaining a healthy financial position. Regularly reassessing its capital structure and refinancing opportunities could help the company optimize its debt-to-assets ratio and enhance its overall financial stability.
Peer comparison
Dec 31, 2023