Xcel Energy Inc (XEL)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 64,079,000 | 62,870,000 | 61,658,000 | 60,945,000 | 61,188,000 | 59,975,000 | 59,317,000 | 57,985,000 | 57,851,000 | 57,517,000 | 56,779,000 | 56,511,000 | 53,957,000 | 53,708,000 | 53,456,000 | 51,133,000 | 50,448,000 | 50,240,000 | 48,584,000 | 47,850,000 |
| Total stockholders’ equity | US$ in thousands | 17,616,000 | 17,309,000 | 16,914,000 | 16,818,000 | 16,675,000 | 16,384,000 | 15,971,000 | 15,732,000 | 15,612,000 | 15,171,000 | 14,792,000 | 14,700,000 | 14,575,000 | 13,777,000 | 13,385,000 | 13,302,000 | 13,239,000 | 13,141,000 | 12,366,000 | 12,329,000 |
| Financial leverage ratio | 3.64 | 3.63 | 3.65 | 3.62 | 3.67 | 3.66 | 3.71 | 3.69 | 3.71 | 3.79 | 3.84 | 3.84 | 3.70 | 3.90 | 3.99 | 3.84 | 3.81 | 3.82 | 3.93 | 3.88 |
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 been relatively stable over the past eight quarters, ranging from 3.62 to 3.71. This ratio indicates that the company relies on debt financing to a moderate extent, with an average debt-to-equity ratio of approximately 3.66 during this period.
A financial leverage ratio of 3.66 implies that for every dollar of equity, the company has around $3.66 of debt. This suggests that Xcel Energy has a higher amount of debt compared to its equity, which can increase financial risk but also potentially lead to higher returns for shareholders through leveraging.
Overall, the consistency of the financial leverage ratio indicates that Xcel Energy has maintained a stable capital structure over the past two years, balancing debt and equity financing to support its operations and growth initiatives. However, investors and analysts should continue monitoring changes in this ratio to assess the company's ability to manage its debt levels effectively.
Peer comparison
Dec 31, 2023