Xcel Energy Inc (XEL)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 3.59 | 3.64 | 3.67 | 3.71 | 3.70 |
Based on the provided data for Xcel Energy Inc, the solvency ratios indicate a strong financial position in terms of debt management and leverage:
1. Debt-to-assets ratio: Xcel Energy has consistently maintained a debt-to-assets ratio of 0.00 from 2020 to 2024. This indicates that the company's total debt is very minimal compared to its total assets, suggesting a low level of financial risk.
2. Debt-to-capital ratio: Similar to the debt-to-assets ratio, Xcel Energy's debt-to-capital ratio remained at 0.00 for the same period. This signifies that the company has not relied heavily on debt financing in relation to its total capital structure.
3. Debt-to-equity ratio: With a debt-to-equity ratio of 0.00 across the years, Xcel Energy shows that it has no debt in relation to its shareholder equity. This implies that the company is not highly leveraged using debt to finance its operations.
4. Financial leverage ratio: The financial leverage ratio for Xcel Energy has seen a decreasing trend from 3.70 in 2020 to 3.59 in 2024. This indicates that the company's reliance on debt to support its operations has been decreasing over the years, which is a positive sign for solvency and financial stability.
Overall, Xcel Energy's solvency ratios reflect a conservative approach to debt management, with minimal debt levels in comparison to its assets, capital, and equity. This suggests a strong financial position and lower financial risk for the company.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 2.36 | 2.62 | 2.75 | 2.70 | 2.64 |
The interest coverage ratio for Xcel Energy Inc has shown a relatively stable trend over the past five years. Starting at 2.64 in December 2020, it increased to 2.70 by December 2021 and further to 2.75 by December 2022. However, there was a slight decline in December 2023 to 2.62 and a more noticeable drop to 2.36 by December 2024.
The interest coverage ratio indicates the company's ability to meet its interest payments on outstanding debt. A ratio above 1 suggests that the company is generating enough operating income to cover its interest expenses. In the case of Xcel Energy Inc, the ratio has generally remained above 2, indicating a healthy ability to cover interest obligations. However, the decreasing trend in recent years may warrant further monitoring to ensure the company's financial stability and liquidity in the future.