Edison International (EIX)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	15,501,000	15,670,000	15,793,000	15,648,000	15,621,000	15,392,000	15,774,000	15,731,000	15,888,000	14,841,000	15,412,000	15,322,000	14,048,000	15,649,000	16,446,000	15,544,000	15,496,000	15,353,000	12,913,000	12,719,000
Debt-to-capital ratio		0.66	0.65	0.65	0.65	0.63	0.62	0.61	0.61	0.60	0.61	0.60	0.57	0.58	0.55	0.54	0.55	0.54	0.53	0.55	0.55

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 been steadily increasing over the past eight quarters, from 0.64 in Q1 2022 to 0.69 in Q4 2023. This indicates that the company is relying more on debt financing relative to its total capital structure.

The increasing trend in the debt-to-capital ratio suggests that the company may be taking on more debt to fund its operations or growth initiatives. While a higher debt-to-capital ratio can indicate greater financial risk, it can also be a strategic move to take advantage of low interest rates or invest in projects with potential for high returns.

It is important for investors and creditors to closely monitor this trend to assess Edison International's ability to manage its debt levels and generate sufficient returns to cover interest payments. Additionally, the company's future capital allocation decisions and debt management strategies will play a crucial role in determining the impact of its debt levels on overall financial health.