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.