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Evaluation of Duke Energy's Financial Strengths


The History of Duke will include how the company got started, their goals and mission and how long the company has been in business. The history will also include the economy's major Boom's and how Duke Energy managed to pull through and maintain in business. Because the information found on a company's financial statement itself does not give a complete understanding of the company's financial performance and strength, I will compute the numbers into useful financial ratios. Using financial ratios will provide a better comparison platform to compare and evaluate Duke Energy within their relative industry benchmarks. For the purposes of this evaluation I will be using the following Financial Ratios for my Analysis:.
             .
             Liquidity.
             - Current Ratio.
             - Quick Ratio.
             Degree of Financial Leverage of Debt.
             - Debt-to-Equity.
             - Debt-to-Assets.
             Profitability.
             - Return on Assets (ROA).
             - Return on Equity (ROE).
             History of Duke Energy.
             Dr. W. Gill Wylie, James Buchanan Duke, and William States Lee founded Duke Energy in the early 1900's with the Catawba Power Company. They opened the first power plant in 1904 providing electricity in Rock Hill, South Carolina. After the II World War, energy related companies boomed as the rise for electrical appliances soared. This major growth expansion provided Duke Energy with the means to expand. In 1965, Duke Energy was able to launch the company's first Nuclear Power Plant, which was completed in 7 years at less than half the cost of their industry average earning them their first three Edison Awards. With over one hundred years of service, Duke Energy is the largest electric power company in the United States. Priding themselves on honesty and integrity, emphasizing the essential nature of high standards and performance to their customers and stakeholders. ("Duke Energy's History," n.d).
             Financial Ratios.
             Liquidity.
             Due to the fact that I am evaluating Duke Energy's financial strength, finding out their liquidity is a very good indicator.


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