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.
Peer comparison
Dec 31, 2023