Edison International (EIX)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.42 | 5.27 | 5.00 | 4.70 | 4.94 |
Based on the provided data, Edison International shows consistently low solvency ratios across the years analyzed.
1. Debt-to-assets ratio: Edison International's debt-to-assets ratio is 0.00 for all the years from 2020 to 2024. This indicates that the company has no debt in relation to its total assets, suggesting a strong financial position in terms of asset coverage by debt.
2. Debt-to-capital ratio: Similarly, the debt-to-capital ratio is 0.00 for all the years analyzed. This ratio reflects the proportion of a company's capital that is funded by debt, and in this case, it indicates that the company's capital structure does not rely on debt financing.
3. Debt-to-equity ratio: The debt-to-equity ratio is also 0.00 for each year from 2020 to 2024. This ratio compares a company's debt to its equity and indicates the extent to which the company is leveraged. A low debt-to-equity ratio suggests a lower financial risk for the company.
4. Financial leverage ratio: The financial leverage ratio shows a fluctuating trend over the years, starting at 4.94 in 2020, decreasing to 1.42 in 2024. This ratio measures the proportion of a company's assets that are financed by debt. The decrease in the financial leverage ratio over the years indicates a reduction in the company's reliance on debt to finance its operations and investments.
In conclusion, based on the solvency ratios analyzed, Edison International appears to have a strong financial position with low levels of debt relative to its assets, capital, and equity. The decreasing trend in the financial leverage ratio further suggests a conservative approach to leverage, which may indicate a lower risk of financial distress for the company.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 1.84 | 1.94 | 1.57 | 1.85 | 1.63 |
Edison International's interest coverage ratio has shown some fluctuation over the past five years based on the data provided. The interest coverage ratio indicates the company's ability to meet its interest payment obligations from its operating income.
As of December 31, 2020, the interest coverage ratio was 1.63, which suggests that the company's operating income was able to cover its interest expenses approximately 1.63 times.
By December 31, 2021, the interest coverage ratio improved to 1.85, indicating a slightly better ability to cover interest payments compared to the previous year.
However, by December 31, 2022, the interest coverage ratio decreased to 1.57, signaling a slight decline in the company's ability to cover its interest expenses.
The ratio then increased to 1.94 by December 31, 2023, showing a recovery and improved ability to cover interest payments.
As of December 31, 2024, the interest coverage ratio remained stable at 1.84, indicating that the company's operating income continued to cover its interest expenses adequately.
Overall, while there have been fluctuations in the interest coverage ratio over the past five years, it is important for investors and analysts to continue monitoring this ratio to assess the company's financial health and its ability to meet its debt obligations.