Nasdaq xel12/17/2023 So its liabilities total US$40.1b more than the combination of its cash and short-term receivables. Offsetting these obligations, it had cash of US$212.0m as well as receivables valued at US$1.88b due within 12 months. The latest balance sheet data shows that Xcel Energy had liabilities of US$5.05b due within a year, and liabilities of US$37.2b falling due after that. NasdaqGS:XEL Debt to Equity History April 22nd 2022 How Strong Is Xcel Energy's Balance Sheet? ![]() Net debt is about the same, since the it doesn't have much cash. View our latest analysis for Xcel Energy What Is Xcel Energy's Debt?Īs you can see below, at the end of December 2021, Xcel Energy had US$23.4b of debt, up from US$20.7b a year ago. When we think about a company's use of debt, we first look at cash and debt together. Of course, the upside of debt is that it often represents cheap capital, especially when it replaces dilution in a company with the ability to reinvest at high rates of return. However, a more frequent (but still costly) occurrence is where a company must issue shares at bargain-basement prices, permanently diluting shareholders, just to shore up its balance sheet. Ultimately, if the company can't fulfill its legal obligations to repay debt, shareholders could walk away with nothing. ![]() But should shareholders be worried about its use of debt? When Is Debt Dangerous?ĭebt is a tool to help businesses grow, but if a business is incapable of paying off its lenders, then it exists at their mercy. ( NASDAQ:XEL) does have debt on its balance sheet. The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says 'The biggest investment risk is not the volatility of prices, but whether you will suffer a permanent loss of capital.' When we think about how risky a company is, we always like to look at its use of debt, since debt overload can lead to ruin.
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