Nextera Energy Inc (NEE)
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 | 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-equity ratio | 1.29 | 1.41 | 1.37 | 1.15 | 1.01 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $61,405,000K ÷ $47,468,000K
= 1.29
NextEra Energy Inc's debt-to-equity ratio has fluctuated over the past five years, showing an upward trend from 2019 to 2022, before experiencing a slight decrease in 2023. The ratio stood at 1.15 in 2019 and has steadily increased to reach 1.66 in 2022, indicating a higher proportion of debt relative to equity in the company's capital structure during this period. However, there was a slight improvement in 2023, as the ratio decreased to 1.54, suggesting a decrease in the company's reliance on debt financing compared to the previous year. Overall, the company has maintained a debt-to-equity ratio above 1 in the last five years, indicating that it has been relying more on debt financing compared to equity to fund its operations and investments. Investors and analysts may consider the trend in the debt-to-equity ratio when assessing the company's financial risk and leverage position.
Peer comparison
Dec 31, 2023