Edison International (EIX)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 22,067,000 | 81,758,000 | 78,041,000 | 74,745,000 | 69,372,000 |
| Total stockholders’ equity | US$ in thousands | 15,565,000 | 15,501,000 | 15,621,000 | 15,888,000 | 14,048,000 |
| Financial leverage ratio | 1.42 | 5.27 | 5.00 | 4.70 | 4.94 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $22,067,000K ÷ $15,565,000K
= 1.42
The financial leverage ratio of Edison International has fluctuated over the past five years. It decreased from 4.94 in December 31, 2020 to 4.70 in December 31, 2021, indicating a slight improvement in the company's leverage position. However, it increased to 5.00 in December 31, 2022 and further to 5.27 in December 31, 2023, suggesting a higher level of financial leverage. Interestingly, there was a significant drop in the financial leverage ratio to 1.42 in December 31, 2024, which may indicate a significant reduction in the company's debt relative to its equity at that point in time.
Overall, Edison International's financial leverage ratio has shown variability, with fluctuations in the level of leverage over the years. It is essential for stakeholders to monitor these changes to assess the firm's risk and financial stability.
Peer comparison
Dec 31, 2024