Xcel Energy Inc (XEL)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 64,079,000 | 61,188,000 | 57,851,000 | 53,957,000 | 50,448,000 |
| Total stockholders’ equity | US$ in thousands | 17,616,000 | 16,675,000 | 15,612,000 | 14,575,000 | 13,239,000 |
| Financial leverage ratio | 3.64 | 3.67 | 3.71 | 3.70 | 3.81 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $64,079,000K ÷ $17,616,000K
= 3.64
The financial leverage ratio of Xcel Energy, Inc. has shown a slight decrease from 3.81 in 2019 to 3.64 in 2023. This indicates that the company's reliance on debt to finance its operations has decreased over the years. A lower financial leverage ratio suggests that the company is using less debt financing relative to its equity, which can be seen as a positive sign of financial stability and reduced financial risk for stakeholders. It is important to note that a decreasing trend in the financial leverage ratio could imply that the company is becoming less leveraged and potentially more financially sustainable over time.
Peer comparison
Dec 31, 2023