Nextera Energy Inc (NEE)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 3.80 | 3.74 | 4.05 | 3.79 | 3.50 |
Nextera Energy Inc's solvency ratios indicate a healthy financial position with consistently low debt levels. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have all been at 0.00 from 2020 to 2024, suggesting that the company carries minimal debt relative to its total assets, capital, and equity.
The Financial leverage ratio, however, shows a slight fluctuation over the same period, ranging from 3.50 to 4.05. This ratio indicates that the company's assets are financed primarily through equity rather than debt, with a higher ratio implying higher financial leverage. Despite the fluctuations, the ratios remain within a reasonable range, indicating a manageable level of debt and a strong equity base to support the company's operations.
In summary, Nextera Energy Inc's solvency ratios suggest a strong financial position with low debt levels and a conservative approach to capital structure, which is favorable for long-term stability and growth.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 1.94 | 3.19 | 6.98 | 3.06 | 2.01 |
Nextera Energy Inc's interest coverage ratio has shown a fluctuating trend over the years. In December 31, 2020, the interest coverage ratio was at 2.01, indicating that the company was earning just enough to cover its interest obligations. However, there was an improvement in the coverage ratio in December 31, 2021, reaching 3.06, suggesting a better ability to meet interest payments.
The ratio experienced a significant increase to 6.98 by December 31, 2022, which indicates a strong ability to cover interest expenses comfortably. It then decreased to 3.19 by December 31, 2023, still showing a healthy position but slightly lower than the previous year.
By December 31, 2024, the interest coverage ratio dropped to 1.94, indicating a decline in the company's ability to cover interest payments. Overall, while the company has shown fluctuations in its interest coverage ratio over the years, it is important to closely monitor future trends to ensure sustainability in meeting its interest obligations.