Discover Financial Services 10-K form for the fiscal year ended 2023-12-31, page 85: 
DISCOVER FINANCIAL SERVICES


Consolidated Statements of Financial Condition

(dollars in millions, except for share amounts)|    |                                                                                                                                                                                                                |              |         |      |          |    |         |
|---:|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:-------------|:--------|:-----|:---------|:---|:--------|
|  1 |                                                                                                                                                                                                                | December 31, |         |      |          |    |         |
|  2 |                                                                                                                                                                                                                | 2023         |         | 2022 |          |    |         |
|  3 | Assets                                                                                                                                                                                                         |              |         |      |          |    |         |
|  4 | Cash and cash equivalents                                                                                                                                                                                      | $            | 11,685  |      |          | $  | 8,856   |
|  5 | Restricted cash                                                                                                                                                                                                | 43           |         |      | 41       |    |         |
|  7 | Investment securities (includes available-for-sale securities of $13,402 and $11,987 reported at fair value with associated amortized cost of $13,451 and $12,167 at December 31, 2023 and 2022, respectively) | 13,655       |         |      | 12,208   |    |         |
|  8 | Loan receivables                                                                                                                                                                                               |              |         |      |          |    |         |
|  9 | Loan receivables                                                                                                                                                                                               | 128,409      |         |      | 112,120  |    |         |
| 10 | Allowance for credit losses                                                                                                                                                                                    | (9,283)      |         |      | (7,374)  |    |         |
| 11 | Net loan receivables                                                                                                                                                                                           | 119,126      |         |      | 104,746  |    |         |
| 12 | Premises and equipment, net                                                                                                                                                                                    | 1,091        |         |      | 1,003    |    |         |
| 13 | Goodwill                                                                                                                                                                                                       | 255          |         |      | 255      |    |         |
| 15 | Other assets                                                                                                                                                                                                   | 5,667        |         |      | 4,597    |    |         |
| 16 | Total assets                                                                                                                                                                                                   | $            | 151,522 |      |          | $  | 131,706 |
| 17 | Liabilities and Stockholders' Equity                                                                                                                                                                           |              |         |      |          |    |         |
| 18 | Liabilities                                                                                                                                                                                                    |              |         |      |          |    |         |
| 19 | Deposits                                                                                                                                                                                                       |              |         |      |          |    |         |
| 20 | Interest-bearing deposit accounts                                                                                                                                                                              | $            | 107,493 |      |          | $  | 90,151  |
| 21 | Non-interest-bearing deposit accounts                                                                                                                                                                          | 1,438        |         |      | 1,485    |    |         |
| 22 | Total deposits                                                                                                                                                                                                 | 108,931      |         |      | 91,636   |    |         |
| 23 | Short-term borrowings                                                                                                                                                                                          | 750          |         |      | -        |    |         |
| 24 | Long-term borrowings                                                                                                                                                                                           | 20,581       |         |      | 20,108   |    |         |
| 25 | Accrued expenses and other liabilities                                                                                                                                                                         | 6,432        |         |      | 5,618    |    |         |
| 26 | Total liabilities                                                                                                                                                                                              | 136,694      |         |      | 117,362  |    |         |
| 27 | Commitments, contingencies and guarantees (Notes 15, 18 and 19)                                                                                                                                                |              |         |      |          |    |         |
| 28 | Stockholders' Equity                                                                                                                                                                                           |              |         |      |          |    |         |
| 29 | Common stock, par value $0.01 per share; 2,000,000,000 shares authorized; 570,837,720 and 569,689,007 shares issued at December 31, 2023 and 2022, respectively                                                | 6            |         |      | 6        |    |         |
| 30 | Preferred stock, par value $0.01 per share; 200,000,000 shares authorized; 10,700 shares issued and outstanding at December 31, 2023 and 2022, respectively                                                    | 1,056        |         |      | 1,056    |    |         |
| 31 | Additional paid-in capital                                                                                                                                                                                     | 4,553        |         |      | 4,468    |    |         |
| 32 | Retained earnings                                                                                                                                                                                              | 30,448       |         |      | 28,207   |    |         |
| 33 | Accumulated other comprehensive loss                                                                                                                                                                           | (225)        |         |      | (339)    |    |         |
| 34 | Treasury stock, at cost; 320,734,860 and 302,305,216 shares at December 31, 2023 and 2022, respectively                                                                                                        | (21,010)     |         |      | (19,054) |    |         |
| 35 | Total stockholders' equity                                                                                                                                                                                     | 14,828       |         |      | 14,344   |    |         |
| 36 | Total liabilities and stockholders' equity                                                                                                                                                                     | $            | 151,522 |      |          | $  | 131,706 |
The table below presents the carrying amounts of certain assets and liabilities of Discover Financial Services' consolidated variable interest entities ("VIEs"), which are included in the consolidated statements of financial condition above. The assets in the table below include those assets that can only be used to settle obligations of the consolidated VIEs. The liabilities in the table below include third-party liabilities of consolidated VIEs only and exclude intercompany balances that eliminate in consolidation. The liabilities also exclude amounts for which creditors have recourse to the general credit of Discover Financial Services.
|    |                                                                       |              |         |      |    |         |
|---:|:----------------------------------------------------------------------|:-------------|:--------|:-----|:---|:--------|
|  1 |                                                                       | December 31, |         |      |    |         |
|  2 |                                                                       | 2023         |         | 2022 |    |         |
|  3 | Assets                                                                |              |         |      |    |         |
|  4 | Restricted cash                                                       | $            | 43      |      | $  | 41      |
|  5 | Loan receivables                                                      | $            | 30,590  |      | $  | 25,937  |
|  6 | Allowance for credit losses allocated to securitized loan receivables | $            | (1,347) |      | $  | (1,152) |
|  7 | Other assets                                                          | $            | 3       |      | $  | 3       |
|  8 | Liabilities                                                           |              |         |      |    |         |
|  9 | Short- and long-term borrowings                                       | $            | 11,743  |      | $  | 10,259  |
| 10 | Accrued expenses and other liabilities                                | $            | 19      |      | $  | 14      |

See Notes to the Consolidated Financial Statements.

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Question: How does Discover Financial Services' Debt-to-Equity Ratio for 2023 reflect on its financial stability?
Answer: Increase in Leverage: The ratio increased from 8.2 in 2022 to 9.2 in 2023, indicating higher reliance on debt relative to equity.
Financial Risk: The higher ratio suggests greater financial risk due to increased debt obligations.
Impact on Stability: Greater leverage could affect financial stability, especially in adverse economic conditions or with rising interest rates.