PG&E Corp (PCG)
Debt-to-capital ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 53,569,000 | 50,975,000 | 47,742,000 | 38,225,000 | 37,288,000 |
| Total stockholders’ equity | US$ in thousands | 30,149,000 | 25,040,000 | 22,823,000 | 20,971,000 | 21,001,000 |
| Debt-to-capital ratio | 0.64 | 0.67 | 0.68 | 0.65 | 0.64 |
December 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $53,569,000K ÷ ($53,569,000K + $30,149,000K)
= 0.64
The debt-to-capital ratio of PG&E Corp has shown a slight upward trend over the past five years, increasing from 0.64 in 2020 to 0.65 in 2021, further to 0.68 in 2022, followed by a slight decrease to 0.67 in 2023, and then a return to 0.64 in 2024. This ratio indicates that PG&E Corp finances a significant portion of its operations through debt relative to its total capital. The increasing trend may imply a growing reliance on debt financing, which could potentially increase financial risk due to higher interest payments and debt obligations. It is essential for stakeholders to monitor this ratio closely to ensure that PG&E Corp maintains a healthy balance between debt and equity in its capital structure. Additionally, further analyses of the company's financial performance and ability to service its debt obligations are warranted to gain a comprehensive understanding of its financial health.
Peer comparison
Dec 31, 2024