Edison International (EIX)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 15,501,000 | 15,621,000 | 15,888,000 | 14,048,000 | 15,496,000 |
| Debt-to-capital ratio | 0.66 | 0.63 | 0.60 | 0.58 | 0.54 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $30,316,000K ÷ ($30,316,000K + $15,501,000K)
= 0.66
The debt-to-capital ratio of Edison International has shown an increasing trend over the past five years, starting at 0.59 in 2019 and reaching 0.69 by the end of 2023. This indicates that the company has been relying more on debt to finance its operations and investments relative to its capital structure.
The trend suggests that Edison International has been increasing its debt levels in relation to its overall capital, which includes both debt and equity. A higher debt-to-capital ratio can indicate higher financial risk, as more debt means higher interest payments and potential strain on cash flows.
It is important for investors and stakeholders to monitor this trend closely to assess the company's ability to manage its debt levels effectively and maintain a healthy balance between debt and equity financing. A further increase in the debt-to-capital ratio could raise concerns about the company's financial stability and liquidity position.
Peer comparison
Dec 31, 2023