Sempra Energy (SRE)
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 | — | 24,513,000 | 20,099,000 | — | — |
| Total stockholders’ equity | US$ in thousands | 28,675,000 | 27,115,000 | 25,981,000 | 23,373,000 | 19,929,000 |
| Debt-to-equity ratio | 0.00 | 0.90 | 0.77 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $28,675,000K
= 0.00
The debt-to-equity ratio of Sempra has fluctuated over the past five years, ranging from 0.95 to 1.30. In 2021, the ratio was at its lowest at 0.95, indicating a relatively lower level of debt compared to equity. However, this ratio increased to 1.30 in 2019, suggesting a higher reliance on debt financing to support the company's operations and growth.
In recent years, the debt-to-equity ratio has remained relatively stable, with minor fluctuations around the 1.04 to 1.08 range. This indicates that Sempra has maintained a consistent balance between debt and equity in its capital structure. A ratio above 1 indicates that the company has more debt than equity, which can be a sign of higher financial risk but also potentially higher returns if the borrowed funds are effectively utilized.
Overall, the trends in Sempra's debt-to-equity ratio over the past five years suggest a balanced approach to capital structure management, although investors and analysts should continue to monitor changes in this ratio to assess the company's financial health and risk profile.
Peer comparison
Dec 31, 2023