Sempra Energy (SRE)
Solvency ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.33 | 0.33 | 0.33 | 0.32 | 0.32 | 0.33 | 0.32 | 0.31 | 0.31 | 0.32 | 0.32 | 0.28 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.51 | 0.50 | 0.50 | 0.49 | 0.49 | 0.50 | 0.48 | 0.47 | 0.47 | 0.47 | 0.48 | 0.44 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 1.05 | 1.01 | 1.00 | 0.97 | 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 |
| Financial leverage ratio | 3.08 | 3.16 | 3.07 | 3.08 | 3.04 | 3.04 | 2.97 | 2.91 | 2.90 | 2.80 | 2.82 | 2.87 | 2.77 | 2.87 | 2.70 | 2.83 | 2.85 | 2.89 | 2.90 | 3.39 |
The solvency ratios of Sempra Energy, as indicated by its financial statements data, show trends in the company's ability to meet its long-term debt obligations. The debt-to-assets ratio has increased from 0% in the earlier periods to around 33% in the most recent periods, indicating that a larger portion of the company's assets is financed by debt.
The debt-to-capital ratio has also shown an increasing trend, reaching around 51% by the end of December 2024, implying that more than half of Sempra Energy's capital structure is composed of debt. This indicates a higher reliance on debt financing, which could increase financial risk.
The debt-to-equity ratio has consistently risen over the periods, exceeding 1 by June 2024, indicating that the company's debt levels have surpassed its equity levels. This suggests a higher degree of financial leverage and reliance on debt to finance operations and investments.
Moreover, the financial leverage ratio has shown an upward trajectory, reaching 3.16 by September 2024, indicating an increasing proportion of debt in relation to equity. This suggests that Sempra Energy has been taking on more debt compared to its equity to finance its operations and growth.
Overall, the increasing trend in these solvency ratios implies that Sempra Energy has been progressively relying more on debt to fund its operations and investments, potentially increasing its financial risk and leverage in the long term.
Coverage ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 4.26 | 3.61 | 3.41 | 3.56 | 3.72 | 3.71 | 3.64 | 3.63 | 3.56 | 3.37 | 2.16 | 2.12 | 2.18 | 2.21 | 3.58 | 5.26 | 4.71 | 4.66 | 4.99 | 3.22 |
The interest coverage ratio of Sempra Energy has exhibited fluctuations over the reported periods, reflecting the company's ability to meet its interest payment obligations from operating profits. The trend indicates that Sempra Energy's interest coverage improved from March 31, 2020, where it stood at 3.22, peaking at 5.26 on March 31, 2021. However, there was a subsequent decline in interest coverage, reaching a low of 2.12 on March 31, 2022.
Following this low point, there was a slight recovery in interest coverage, with the ratio hovering around 3.5 to 3.7 from March 31, 2023, to December 31, 2024. The generally decreasing trend in the latter periods could suggest increased pressure on the company's ability to cover its interest expenses with operating profits. It may be worth examining the reasons behind this trend to assess the company's financial health and sustainability in meeting its debt obligations.