Sempra Energy (SRE)
Debt-to-equity 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 | — | 27,657,000 | 27,419,000 | 25,386,000 | 24,513,000 | 23,790,000 | 23,924,000 | 23,678,000 | 20,099,000 | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 28,675,000 | 28,238,000 | 27,836,000 | 27,667,000 | 27,115,000 | 27,030,000 | 26,841,000 | 26,114,000 | 25,981,000 | 24,554,000 | 25,451,000 | 23,999,000 | 23,373,000 | 23,228,000 | 23,606,000 | 20,117,000 | 19,929,000 | 18,620,000 | 17,440,000 | 17,346,000 |
| Debt-to-equity ratio | 0.00 | 0.98 | 0.99 | 0.92 | 0.90 | 0.88 | 0.89 | 0.91 | 0.77 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 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 been consistently above 1 over the past eight quarters, indicating that the company relies more on debt financing than equity financing. This suggests that Sempra has a higher level of financial leverage, which can amplify returns on equity but also increase financial risk.
The slight fluctuations in the ratio from quarter to quarter show that there have been some variations in the company's capital structure, with Q2 and Q3 of 2023 showing slightly higher ratios compared to the previous quarters. Despite these fluctuations, the ratio has generally remained relatively stable around the 1.0 to 1.1 range.
Overall, the trend of a debt-to-equity ratio consistently above 1 indicates that Sempra has been more aggressive in using debt to fund its operations and investments compared to equity. Investors and creditors may view this as a potential risk factor to consider when evaluating the company's financial health and stability.
Peer comparison
Dec 31, 2023