Edison International (EIX)
Financial leverage ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 85,579,000 | 84,749,000 | 84,818,000 | 83,599,000 | 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 |
| Total stockholders’ equity | US$ in thousands | 15,565,000 | 15,663,000 | 15,424,000 | 15,172,000 | 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 | 13,748,000 | 14,253,000 | 13,351,000 |
| Financial leverage ratio | 5.50 | 5.41 | 5.50 | 5.51 | 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 | 4.99 | 4.70 | 4.95 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $85,579,000K ÷ $15,565,000K
= 5.50
The financial leverage ratio of Edison International has shown some fluctuations over the period from March 31, 2020, to December 31, 2024. The ratio started at 4.95 on March 31, 2020, decreased to a low of 4.60 on March 31, 2021, and then gradually increased to reach 5.50 by June 30, 2024.
The financial leverage ratio measures the proportion of a company's debt to its equity and indicates the level of financial risk the company carries. A higher ratio indicates higher financial risk as more debt is being used to finance operations, while a lower ratio suggests a more conservative capital structure.
Edison International's increasing trend in the financial leverage ratio over the period may signal a higher reliance on debt financing, which could potentially lead to increased financial risk. It is important for investors and stakeholders to closely monitor the company's leverage ratio to assess its financial stability and ability to meet its debt obligations.
Peer comparison
Dec 31, 2024