Edison International (EIX)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 30,316,000 | 27,025,000 | 24,170,000 | 19,632,000 | 17,864,000 |
| Total assets | US$ in thousands | 81,758,000 | 78,041,000 | 74,745,000 | 69,372,000 | 64,382,000 |
| Debt-to-assets ratio | 0.37 | 0.35 | 0.32 | 0.28 | 0.28 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $30,316,000K ÷ $81,758,000K
= 0.37
The debt-to-assets ratio for Edison International has shown an upward trend over the past five years, increasing from 0.29 in 2019 to 0.42 in 2023. This indicates that the company's proportion of debt relative to its total assets has been on the rise.
A higher debt-to-assets ratio suggests that a larger portion of the company's assets is financed by debt, which can increase financial risk and potential volatility in times of economic uncertainty. However, it is important to note that the level of debt should be analyzed in conjunction with other financial metrics and industry benchmarks to gain a more comprehensive understanding of the company's overall financial health.
Overall, Edison International's increasing debt-to-assets ratio may raise concerns about its leverage and ability to meet its debt obligations, highlighting the importance of monitoring the company's debt management strategies and financial performance closely.
Peer comparison
Dec 31, 2023