CFC’s 2024 Key Ratio Trend Analysis Results Highlight Financial Stability and Growth Across Electric Cooperatives

Rhea-AI Summary

The National Rural Utilities Cooperative Finance Corporation (CFC) has released its 2024 Key Ratio Trend Analysis, showing strong financial performance across electric distribution cooperatives. The report, based on data from 815 cooperatives, reveals robust consumer growth with 89% of cooperatives reporting increases, particularly in Utah, Idaho, and Florida. Financial metrics remained solid with a 45% median equity-to-asset ratio and long-term debt at 43% of total assets. Coverage ratios demonstrated strong earnings, with median times interest earned at 2.60 and modified debt service coverage at 1.86. Despite elevated interest rates and inflation, cooperatives maintained stability while investing significantly in utility plant infrastructure. Electricity sales rebounded in 2024 after moderating in 2023, indicating renewed system usage growth across the network.

Positive

• 89% of cooperatives reported consumer growth, with strong performance in Utah, Idaho, and Florida
• Solid financial metrics with 45% median equity-to-asset ratio
• Strong coverage ratios: 2.60 times interest earned and 1.86 modified debt service coverage
• Electricity sales rebounded in 2024, showing renewed growth in system usage
• Continued investment in utility plant infrastructure for long-term growth

Negative

• None.

Insights

Financial Analyst

CFC's KRTA reveals electric cooperatives maintained financial stability with 45% equity ratio and healthy coverage metrics despite economic challenges.

The 2024 Key Ratio Trend Analysis (KRTA) from CFC offers compelling evidence of financial resilience across electric cooperatives despite challenging macroeconomic conditions. The 45% median equity-to-asset ratio demonstrates a robust capital structure, providing cooperatives with substantial financial flexibility. When paired with long-term debt accounting for under 43% of total assets, this balanced approach has positioned these utilities to effectively manage both operational needs and growth initiatives.

The coverage ratios are particularly noteworthy, with a times interest earned ratio of 2.60 and modified debt service coverage at 1.86. These metrics indicate cooperatives are generating sufficient earnings to comfortably meet their debt obligations—a critical factor given the capital-intensive nature of utility operations and the elevated interest rate environment. The consistent consumer growth reported by 89% of cooperatives further supports the sector's stability, with Utah, Idaho, and Florida leading in growth rates.

The rebound in electricity sales following 2023's moderation signals renewed demand strength, likely contributing positively to revenue streams. What's most significant from a long-term perspective is the continued investment in utility plant infrastructure, which suggests these cooperatives are prioritizing system reliability and capacity expansion to accommodate future growth rather than solely focusing on short-term financial metrics. This balance between current financial health and future-focused investment exemplifies the cooperative model's ability to maintain stability while preparing for long-term challenges in the evolving energy landscape.

DULLES, Va., June 23, 2025 (GLOBE NEWSWIRE) -- The National Rural Utilities Cooperative Finance Corporation (CFC) has completed its analysis of the 2024 Key Ratio Trend Analysis (KRTA), an annual report of financial trends among electric distribution cooperatives nationwide.

Now in its 50th year, the KRTA continues to provide valuable insights into the financial health of the cooperative network. The latest results reaffirm that, amid elevated interest rates and persistent inflation, electric cooperatives maintained stable financial performance and steady consumer growth. Most notably, the 2024 results highlighted continued strong investment in utility plant—reinforcing the sector’s long-term commitment to infrastructure and service reliability.

“Amid a complex economic environment in 2024, rural electric cooperatives remained focused and adaptable,” CFC Senior Vice President and Chief Corporate Affairs Officer Brad Captain said. “Their performance this year reflects the continued strength of the cooperative business model.”

Consumer growth held steady in 2024, with nearly 89% of cooperatives reporting increases. Utah, Idaho and Florida were among those states with the highest growth rates. This steady expansion was accompanied by continued investment in utility plant, extending the momentum of sustained infrastructure growth seen in recent years.

“Cooperatives are making smart, long-term investments to support future growth,” CFC Senior Vice President of Strategic Services Amy Luongo said. “Their focus remains on building stronger systems and serving their communities well.”

Electricity sales, which had moderated in 2023, rebounded in 2024—reflecting renewed growth in system usage across much of the network.

Financial ratios in 2024 continued to reflect the underlying strength of the cooperative network. The median equity-to-asset ratio remained solid at 45%, while long-term debt accounted for just under 43% of total assets—illustrating a well-balanced capital structure. Coverage ratios were also healthy, with the median times interest earned ratio at 2.60 and modified debt service coverage at 1.86, signaling strong earnings relative to debt obligations.

“These indicators underscore the ability of cooperatives to manage capital needs while maintaining financial flexibility and long-term stability,” Luongo said.

Final KRTA results are based on data submitted by 815 electric distribution cooperatives for the year ending Dec. 31, 2024. CFC calculates 145 financial and operational ratios for each cooperative and provides a report showing the cooperative’s ratios compared with U.S., state and other key consumer group median values. Median reporting minimizes the effect of outliers and offers a more representative picture of overall performance.

About CFC
Created and owned by America’s electric cooperative network, the National Rural Utilities Cooperative Finance Corporation (CFC)—a nonprofit finance cooperative with approximately $38 billion in assets—provides unparalleled industry expertise, flexibility and responsiveness to serve the needs of our member-owners. CFC is an equal opportunity provider. Visit us online at www.nrucfc.coop.

About KRTA
CFC has published KRTA—an annual report that tracks the median value of 145 financial and operational ratios for participating electric distribution cooperatives over the previous five years—since 1975. Based on data reported by electric distribution cooperatives, KRTA provides electric cooperative CEOs and directors/trustees with a complete picture of their system’s financial performance. In 2023, CFC introduced KRTA Pro, a new online platform that offers a 20-plus year view of KRTA ratios, enabling deeper trend analysis and enhanced access to historical benchmarking.

Contact:
Brad Captain
Corporate Relations Group
800-424-2954

FAQ

What are the key financial metrics from CFC's 2024 Key Ratio Trend Analysis?

The 2024 analysis showed a 45% median equity-to-asset ratio, long-term debt at 43% of total assets, times interest earned ratio at 2.60, and modified debt service coverage at 1.86.

How many electric cooperatives reported growth in 2024?

89% of electric cooperatives reported consumer growth in 2024, with Utah, Idaho, and Florida showing the highest growth rates.

How did electric cooperatives perform amid high interest rates in 2024?

Despite elevated interest rates and inflation, cooperatives maintained stable financial performance, strong coverage ratios, and continued infrastructure investment.

What was the trend in electricity sales for cooperatives in 2024?

Electricity sales rebounded in 2024 after moderating in 2023, reflecting renewed growth in system usage across the cooperative network.

How many electric cooperatives were included in CFC's 2024 KRTA report?

The final KRTA results were based on data submitted by 815 electric distribution cooperatives for the year ending December 31, 2024.