Nextera Energy Inc (NEE)

Debt-to-assets ratio

Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Long-term debt US$ in thousands 61,405,000 59,183,000 60,982,000 59,007,000 55,256,000 54,670,000 53,382,000 50,974,000 50,960,000 48,092,000 47,559,000 46,065,000 41,944,000 42,794,000 42,667,000 41,116,000 37,543,000 36,144,000 33,947,000 29,883,000
Total assets US$ in thousands 177,489,000 171,674,000 168,275,000 165,357,000 158,935,000 156,409,000 151,770,000 144,945,000 140,912,000 139,163,000 135,013,000 132,441,000 127,684,000 126,382,000 121,961,000 120,637,000 117,691,000 114,222,000 110,552,000 109,029,000
Debt-to-assets ratio 0.35 0.34 0.36 0.36 0.35 0.35 0.35 0.35 0.36 0.35 0.35 0.35 0.33 0.34 0.35 0.34 0.32 0.32 0.31 0.27

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 been relatively stable over the past eight quarters, ranging from 0.41 to 0.43. The ratio indicates that, on average, around 41-43% of the company's assets are financed by debt. This suggests that NextEra Energy is not heavily reliant on debt to fund its operations and investments. A lower debt-to-assets ratio is generally favorable as it implies lower financial risk and better solvency. However, it is essential to consider the industry norms and the company's overall financial health when evaluating the significance of this ratio. In this case, NextEra Energy's consistent and moderate debt-to-assets ratio indicates a prudent approach to capital structure management.