Nextera Energy Inc (NEE)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	47,468,000	39,229,000	37,202,000	36,513,000	37,005,000
Debt-to-capital ratio		0.56	0.58	0.58	0.53	0.50

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $61,405,000K ÷ ($61,405,000K + $47,468,000K)
= 0.56

NextEra Energy Inc's debt-to-capital ratio has shown a fluctuating trend over the past five years, ranging from 0.54 in 2019 to 0.61 in 2023. The ratio indicates the proportion of debt in the company's capital structure relative to its total capital, including both debt and equity.

The upward trend in the debt-to-capital ratio from 2019 to 2023 suggests an increasing reliance on debt to finance its operations and growth initiatives. This could indicate that NextEra Energy has been taking on more debt compared to its equity over the years.

While a higher debt-to-capital ratio could signify higher financial risk due to increased debt obligations, it may also indicate greater leverage that can lead to higher returns on equity for the company. It is essential for investors and stakeholders to monitor how NextEra Energy manages its debt levels and the impact on its overall financial health and performance.