Edison International (EIX)

Solvency ratios

	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
Debt-to-assets ratio	0.37	0.37	0.37	0.37	0.35	0.33	0.34	0.33	0.32	0.32	0.32	0.29	0.28	0.28	0.29	0.29	0.28	0.27	0.27	0.27
Debt-to-capital ratio	0.66	0.65	0.65	0.65	0.63	0.62	0.61	0.61	0.60	0.61	0.60	0.57	0.58	0.55	0.54	0.55	0.54	0.53	0.55	0.55
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
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

Edison International's solvency ratios provide insights into the company's ability to meet its long-term financial obligations and the extent to which it relies on debt financing.

The debt-to-assets ratio has remained relatively stable around 0.42 over the past few quarters, indicating that around 42% of the company's assets are financed by debt. This suggests a conservative approach to leverage, with a significant portion of assets funded by equity.

The debt-to-capital ratio has shown a slight increase from 0.64 in Q1 2022 to 0.69 in Q4 2023. This indicates that debt accounts for approximately 69% of the company's capital structure, highlighting a moderate reliance on debt financing compared to equity.

The debt-to-equity ratio has also shown an upward trend from 1.79 in Q1 2022 to 2.20 in Q4 2023. This indicates that the company has been increasing its debt relative to equity, with 2.20 times more debt than equity by the end of Q4 2023.

The financial leverage ratio has been consistently increasing from 4.75 in Q1 2022 to 5.27 in Q4 2023. This ratio indicates that the company's total assets are 5.27 times greater than its equity, reflecting a high level of financial leverage and potential risk associated with a heavy reliance on debt financing.

Overall, the trend in Edison International's solvency ratios suggests a shift towards greater reliance on debt financing over the quarters, potentially increasing financial risk and impacting the company's long-term financial stability.

Coverage ratios

	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
Interest coverage	1.70	1.77	1.61	1.65	1.46	1.48	1.45	1.60	1.81	2.01	1.78	1.66	1.48	0.93	2.06	2.08	2.20	-0.57	-0.44	-0.56

Edison International's interest coverage ratio has shown a relatively stable trend over the past eight quarters, ranging from a low of 1.86 in Q2 2022 to a high of 2.68 in Q3 2022. The interest coverage ratio measures the company's ability to meet its interest obligations with its operating income, and a ratio above 1 indicates that the company is generating enough operating income to cover its interest expenses.

The consistent range of 1.86 to 2.68 suggests that the company has been able to comfortably cover its interest expenses with its operating income, indicating a healthy financial position in terms of debt servicing capability. Moreover, the ratios above 2 indicate that the company's earnings are significantly higher than its interest expenses, providing a cushion for potential fluctuations in income or interest rates.

Overall, the stable and high interest coverage ratios reflect positively on Edison International's financial health and ability to manage its debt obligations effectively.