Alliant Energy Corp (LNT)
Debt-to-equity 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 stockholders’ equity | US$ in thousands | 6,777,000 | 6,276,000 | 5,990,000 | 5,688,000 | 5,205,000 |
| Debt-to-equity ratio | 1.21 | 1.22 | 1.12 | 1.19 | 1.06 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $8,225,000K ÷ $6,777,000K
= 1.21
The debt-to-equity ratio of Alliant Energy Corp. has shown a general upward trend over the past five years, increasing from 1.25 in 2019 to 1.40 in 2023. This indicates that the company has been relying more on debt financing relative to equity financing during this period.
A higher debt-to-equity ratio suggests that a company is financing a larger portion of its operations through debt. While debt can provide tax advantages and leverage for growth, it also increases financial risk due to interest payments and potential liquidity constraints.
It is important for investors and stakeholders to monitor changes in the debt-to-equity ratio as it can provide insights into a company's financial leverage and solvency. A consistent increase in this ratio may indicate a higher risk profile for the company and potentially impact its creditworthiness and ability to raise additional capital in the future.
Peer comparison
Dec 31, 2023