How Much Debt Does Fortis Have? A Look At Their Financials.

Fortis has a total debt of CA$31.4B, which represents a significant portion of its capital structure. This debt level is reflected in a debt-to-equity ratio of 127.2%, meaning that for every dollar of equity, Fortis has over a dollar of debt. However, it’s important to understand that this high debt level is not necessarily a cause for concern, as it can be a strategic decision for a company in a regulated industry like utilities.

Here’s why:

Regulated Industry: Fortis operates in a regulated industry, which means its earnings are relatively stable and predictable. This stability makes it easier for Fortis to manage its debt obligations.
Debt Financing: Utilities typically rely heavily on debt financing to fund their infrastructure projects. This is because these projects often require substantial upfront investments, and debt financing allows Fortis to spread out the cost over time.
Interest Coverage Ratio: While the interest coverage ratio of -105.7% might seem alarming, it’s crucial to remember that this metric can be influenced by various factors. It’s essential to consider the company’s overall financial performance and the specific circumstances that might have contributed to a negative ratio.

Fortis’s debt-to-equity ratio and interest coverage ratio are just two financial metrics that provide insights into its debt levels. To get a more comprehensive picture of Fortis’s financial health, it’s essential to analyze its entire financial statements, including its cash flow statements and income statements.