Nextera Energy Inc (NEE)
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 | 61,405,000 | 55,256,000 | 50,960,000 | 41,944,000 | 37,543,000 |
| Total assets | US$ in thousands | 177,489,000 | 158,935,000 | 140,912,000 | 127,684,000 | 117,691,000 |
| Debt-to-assets ratio | 0.35 | 0.35 | 0.36 | 0.33 | 0.32 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $61,405,000K ÷ $177,489,000K
= 0.35
NextEra Energy Inc's debt-to-assets ratio has shown a gradual increase over the past five years, from 0.36 in 2019 to 0.41 in 2023. This indicates that the company's level of debt relative to its total assets has been on the rise.
A debt-to-assets ratio of 0.41 in 2023 means that for every dollar of assets NextEra Energy Inc holds, 41 cents is financed through debt. This suggests that the company relies significantly on debt financing to support its operations and investments.
While a higher debt-to-assets ratio can indicate increased financial risk and potential liquidity challenges, it is important to note that the ratio has remained relatively stable over the past few years, hovering around the 0.40 mark. This consistency may suggest that NextEra Energy Inc has been managing its debt levels effectively within a certain range.
Overall, further analysis of the company's specific debt obligations, cash flow generation, and overall financial health would be necessary to fully assess the implications of its debt-to-assets ratio.
Peer comparison
Dec 31, 2023