Edison International (EIX)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 81,758,000 | 80,164,000 | 79,551,000 | 78,854,000 | 78,041,000 | 76,709,000 | 75,045,000 | 74,720,000 | 74,745,000 | 73,023,000 | 71,162,000 | 70,505,000 | 69,372,000 | 68,556,000 | 67,051,000 | 66,026,000 | 64,382,000 | 64,212,000 | 59,521,000 | 58,793,000 |
| 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 |
| Financial leverage ratio | 5.27 | 5.12 | 5.04 | 5.04 | 5.00 | 4.98 | 4.76 | 4.75 | 4.70 | 4.92 | 4.62 | 4.60 | 4.94 | 4.38 | 4.08 | 4.25 | 4.15 | 4.18 | 4.61 | 4.62 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $81,758,000K ÷ $15,501,000K
= 5.27
The financial leverage ratio for Edison International has been relatively stable over the past eight quarters, ranging from 4.75 to 5.27. This ratio indicates that the company relies more on debt financing than equity to fund its operations and investments. A higher financial leverage ratio suggests a higher level of financial risk due to increased debt obligations.
The slight increase in the financial leverage ratio from Q1 2022 to Q4 2023 may indicate a growing reliance on debt financing during this period. It is important for Edison International to carefully manage its debt levels to ensure it can meet its obligations and maintain financial stability. A thorough review of the company's debt structure and overall financial health is recommended to assess the potential impact of its leverage on future performance.
Peer comparison
Dec 31, 2023