PG&E Corp (PCG)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 50,975,000 | 47,742,000 | 38,225,000 | 37,288,000 | 0 |
| Total assets | US$ in thousands | 125,698,000 | 118,644,000 | 103,327,000 | 97,856,000 | 85,196,000 |
| Debt-to-assets ratio | 0.41 | 0.40 | 0.37 | 0.38 | 0.00 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $50,975,000K ÷ $125,698,000K
= 0.41
The debt-to-assets ratio for PG&E Corp. has shown a slight upward trend over the past five years, increasing from 0.02 in 2019 to 0.45 in 2023. This indicates that the company's reliance on debt to finance its assets has been growing gradually over the period under review.
A debt-to-assets ratio of 0.45 as of December 31, 2023, suggests that 45% of PG&E Corp.'s assets are financed through debt. This level of leverage indicates that the company has a moderate level of debt in its capital structure, which could potentially signal higher financial risk compared to a company with a lower debt-to-assets ratio.
It is important to note that debt financing can provide tax advantages and boost returns on equity, but it also exposes the company to repayment obligations, interest payments, and financial distress risk. Investors and stakeholders may closely monitor changes in this ratio to assess PG&E Corp.'s ability to manage its debt levels effectively and sustain long-term financial health.
Peer comparison
Dec 31, 2023