PG&E Corp (PCG)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	25,040,000	22,823,000	20,971,000	21,001,000	5,136,000
Debt-to-capital ratio		0.67	0.68	0.65	0.64	0.00

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $50,975,000K ÷ ($50,975,000K + $25,040,000K)
= 0.67

The debt-to-capital ratio of PG&E Corp. has been gradually increasing over the past five years, from 0.23 in 2019 to 0.70 in 2023. This indicates that the company has been relying more on debt to finance its operations and growth relative to its total capital structure.

A higher debt-to-capital ratio can suggest increased financial risk as the company has a higher proportion of debt compared to equity in its capital structure. This implies that PG&E Corp. may have higher interest payments and debt obligations to meet, which could impact its financial flexibility and ability to invest in future growth opportunities.

The consistent increase in the debt-to-capital ratio over the years may raise concerns about the company's overall leverage and ability to manage its debt levels effectively. Investors and creditors may pay close attention to this trend as it could affect PG&E Corp.'s creditworthiness and financial stability in the long run.

In conclusion, the rising trend in PG&E Corp.'s debt-to-capital ratio highlights the company's increasing reliance on debt financing, which could pose risks and impact its financial performance and stability in the future. Management should carefully monitor and manage the company's debt levels to maintain a healthy balance between debt and equity in its capital structure.