Nextera Energy Inc (NEE)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 177,489,000 | 158,935,000 | 140,912,000 | 127,684,000 | 117,691,000 |
| Total stockholders’ equity | US$ in thousands | 47,468,000 | 39,229,000 | 37,202,000 | 36,513,000 | 37,005,000 |
| Financial leverage ratio | 3.74 | 4.05 | 3.79 | 3.50 | 3.18 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $177,489,000K ÷ $47,468,000K
= 3.74
NextEra Energy Inc's financial leverage ratio has demonstrated a fluctuating trend over the past five years. The ratio was highest in 2022 at 4.05, indicating that the company had higher financial leverage or debt compared to its equity during that year. This suggests that a significant portion of NextEra Energy's assets were funded through debt in 2022.
In 2023, the financial leverage ratio decreased to 3.74, signaling a reduction in the company's financial leverage compared to the previous year. Despite the decrease, the ratio remains relatively high, indicating that NextEra Energy still relies substantially on debt to finance its operations and investments.
Comparing the financial leverage ratios from 2020 to 2023, there has been an overall increasing trend, suggesting that NextEra Energy has been taking on more debt relative to its equity over these years. This can potentially increase the company's financial risk due to higher interest payments and obligations associated with debt.
It is important for stakeholders to monitor NextEra Energy's financial leverage ratio closely, as significant changes in this ratio can impact the company's financial stability and ability to meet its financial obligations.
Peer comparison
Dec 31, 2023