Sempra Energy (SRE)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 96,155,000 | 87,181,000 | 78,574,000 | 72,045,000 | 66,623,000 |
| Total stockholders’ equity | US$ in thousands | 31,222,000 | 28,675,000 | 27,115,000 | 25,981,000 | 23,373,000 |
| Financial leverage ratio | 3.08 | 3.04 | 2.90 | 2.77 | 2.85 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $96,155,000K ÷ $31,222,000K
= 3.08
The financial leverage ratio for Sempra Energy has been relatively stable over the past five years, with a slight increase from 2.85 in 2020 to 3.08 in 2024. This indicates that the company relies more on debt financing compared to equity to fund its operations and investments. A higher financial leverage ratio suggests a higher level of financial risk, as the company has a greater amount of debt in its capital structure. It is important for Sempra Energy to carefully manage its debt levels to ensure it remains sustainable and able to meet its financial obligations in the long term.
Peer comparison
Dec 31, 2024