Edison International (EIX)
Debt-to-equity 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-equity ratio | 1.96 | 1.88 | 1.86 | 1.88 | 1.73 | 1.63 | 1.59 | 1.59 | 1.52 | 1.57 | 1.49 | 1.32 | 1.40 | 1.21 | 1.17 | 1.23 | 1.15 | 1.11 | 1.23 | 1.23 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $30,316,000K ÷ $15,501,000K
= 1.96
The debt-to-equity ratio of Edison International has been gradually increasing over the past eight quarters, indicating a higher level of financial leverage. The ratio is calculated by dividing total debt by total equity, showing how much of the company's assets are funded by debt compared to equity.
A ratio above 1 suggests that the company is more reliant on debt financing, which can increase financial risk and interest expenses. In the case of Edison International, the ratios have been consistently above 2, indicating a significant amount of debt in relation to equity.
This trend may raise concerns among investors and creditors, as a higher debt-to-equity ratio could signal increased financial instability and potential difficulties in meeting debt obligations in the future. It is crucial for the company to closely monitor its debt levels and explore strategies to reduce leverage and improve its overall financial health.
Peer comparison
Dec 31, 2023