Debt-to-Equity Ratio

The debt-to-equity ratio of 1.84x means that Eversource Energy (ES) uses $1.84 in debt for every $1.00 of shareholder equity—a measure of financial leverage.

Compared to its sector peers, this is well above the sector median of 0.73x, placing ES in the 83rd percentile, indicating it carries more debt than 83% of similar companies. The metric has been stable over the last eight quarters, but the most recent quarter saw a sharp increase of +44.9% (from 1.27x to 1.84x); year-over-year data is not available. The combination of a high absolute level relative to peers with a stable long-term trend suggests that ES has maintained elevated leverage for some time, though the recent spike may signal a temporary event or a shift in capital structure. This elevated debt level introduces additional financial risk, particularly if interest costs rise or cash flows weaken, but the stable trend tempers immediate alarm. Overall, the high debt-to-equity ratio would normally lean bearish, but it does not contradict the NEUTRAL verdict—other factors

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