Edison International (EIX)
Debt-to-assets ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 30,316,000 | 29,532,000 | 29,430,000 | 29,442,000 | 27,025,000 | 25,145,000 | 25,143,000 | 24,967,000 | 24,170,000 | 23,342,000 | 22,891,000 | 20,165,000 | 19,632,000 | 18,958,000 | 19,238,000 | 19,125,000 | 17,864,000 | 17,066,000 | 15,883,000 | 15,683,000 |
| Total assets | US$ in thousands | 81,758,000 | 80,164,000 | 79,551,000 | 78,854,000 | 78,041,000 | 76,709,000 | 75,045,000 | 74,720,000 | 74,745,000 | 73,023,000 | 71,162,000 | 70,505,000 | 69,372,000 | 68,556,000 | 67,051,000 | 66,026,000 | 64,382,000 | 64,212,000 | 59,521,000 | 58,793,000 |
| Debt-to-assets ratio | 0.37 | 0.37 | 0.37 | 0.37 | 0.35 | 0.33 | 0.34 | 0.33 | 0.32 | 0.32 | 0.32 | 0.29 | 0.28 | 0.28 | 0.29 | 0.29 | 0.28 | 0.27 | 0.27 | 0.27 |
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 of Edison International has remained relatively stable over the past eight quarters, hovering around the range of 0.38 to 0.42. This indicates that a significant portion of the company's assets are financed by debt.
A debt-to-assets ratio of 0.42 in Q4 2023 suggests that 42% of the company's total assets are funded by debt. This ratio has increased consistently from 0.39 in Q1 2022 to its current level, indicating a gradual rise in the company's leverage over time.
A higher debt-to-assets ratio may imply increased financial risk as more of the company's assets are financed by debt, potentially making it more vulnerable to economic downturns or interest rate fluctuations. On the other hand, debt can also be used strategically to fund growth and capital investments.
It is essential for investors and stakeholders to closely monitor changes in the debt-to-assets ratio and consider it in conjunction with other financial metrics to assess the company's overall financial health and risk profile.
Peer comparison
Dec 31, 2023