DTE Energy Story

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DTE -- USA Stock  

USD 111.30  0.73  0.65%

DTE Energy is scheduled to announce its earnings today. The next earnings report is expected on the 26th of October 2020. DTE Energy PPandE Turnover is projected to slightly decrease based on the last few years of reporting. The past year's PPandE Turnover was at 0.54. The current year Accounts Payable Turnover is expected to grow to 12.13, whereas Revenue Per Employee is forecasted to decline to about 1.1 M. While many traders are getting carried away by overanalyzing utilities space, it is reasonable to digest DTE Energy as an investment alternative.
Published over a month ago
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Should I hold on to my DTE Energy (NYSE:DTE) position?
The entity has 18.7 B in debt with debt to equity (D/E) ratio of 1.56, which is OK given its current industry classification. The firm has a current ratio of 0.87, suggesting that it has not enough short term capital to pay financial commitments when the payables are due. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. DTE Energy has an asset utilization ratio of 60.95 percent. This indicates that the company is making $0.61 for each dollar of assets. An increasing asset utilization means that DTE Energy is more efficient with each dollar of assets it utilizes for everyday operations.
DTE Energy financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of DTE Energy, including all of DTE Energy's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of DTE Energy assets, the company is considered highly leveraged. Understanding the composition and structure of overall DTE Energy debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.

Understanding DTE Energy Total Liabilities

DTE Energy liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. DTE Energy has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on DTE Energy balance sheet include debt obligations and money owed to different DTE Energy vendors, workers, and loan providers. Below is the chart of DTE Energy short long-term liabilities accounts currently reported on its balance sheet.
You can use DTE Energy financial leverage analysis tool to get a better grip on understanding its financial position

How important is DTE Energy's Liquidity

DTE Energy financial leverage refers to using borrowed capital as a funding source to finance DTE Energy ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. DTE Energy financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between DTE Energy's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions. It is good to see analyst projects for DTE Energy, but it might be worth checking our own buy vs. sell analysis

What is driving DTE Energy Investor Appetite?

DTE Energy reported the last year's revenue of 12.18 B. Total Income to common stockholders was 1.11 B with profit before taxes, overhead, and interest of 3.42 B.

Liabilities Breakdown

Tax Liabilities
Current Liabilities
24.3 B
Long-Term Liabilities
Total Liabilities28.09 Billion
Current Liabilities3.83 Billion
Long-Term Liabilities24.26 Billion
Tax Liabilities2.58 Billion

DTE Energy has a small chance to finish above $116 in 2 months

Latest coefficient of variation is at 1012.57. DTE Energy currently demonstrates below-verage downside deviation. It has Information Ratio of 0.02 and Jensen Alpha of 0.05. However, we do advice investors to further question DTE Energy expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

Our Final Take On DTE Energy

Although many of the other players in the utilities?regulated electric industry are either recovering or due for a correction, DTE Energy may not be as strong as the others in terms of longer-term growth potentials. With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither pick up nor short any shares of DTE Energy at this time. The DTE Energy risk-reward trade off is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to DTE Energy.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of DTE Energy. Please refer to our Terms of Use for any information regarding our disclosure principles.

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