PG&E Corp (PCG)
Debt-to-capital ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 50,975,000 | 50,343,000 | 50,230,000 | 48,508,000 | 47,742,000 | 47,854,000 | 44,174,000 | 39,123,000 | 38,225,000 | 35,959,000 | 35,955,000 | 37,801,000 | 37,288,000 | 36,311,000 | 34,920,000 | 22,176,000 | 0 | — | — | 0 |
| Total stockholders’ equity | US$ in thousands | 25,040,000 | 24,132,000 | 23,763,000 | 23,334,000 | 22,823,000 | 22,234,000 | 21,767,000 | 21,392,000 | 20,971,000 | 20,475,000 | 21,547,000 | 21,127,000 | 21,001,000 | 20,812,000 | 3,549,000 | 5,507,000 | 5,136,000 | 8,739,000 | 10,342,000 | 12,877,000 |
| Debt-to-capital ratio | 0.67 | 0.68 | 0.68 | 0.68 | 0.68 | 0.68 | 0.67 | 0.65 | 0.65 | 0.64 | 0.63 | 0.64 | 0.64 | 0.64 | 0.91 | 0.80 | 0.00 | 0.00 | 0.00 | 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 remained relatively stable over the past eight quarters, ranging from 0.68 to 0.70. This indicates that the company has typically financed its operations with a significant proportion of debt compared to its total capital. A ratio of 0.70 means that 70% of the company's capital structure is funded by debt.
Stable debt-to-capital ratios suggest that PG&E Corp. has maintained a consistent balance between debt and equity financing over this period. This may imply a deliberate capital structure strategy by the company, balancing the benefits of debt, such as tax deductibility of interest expenses, against the risks associated with higher leverage levels.
However, it is important to note that a high debt-to-capital ratio can also indicate higher financial risk, as the company may face challenges in meeting its debt obligations, especially in times of economic downturn or other adverse events. Investors and analysts should continue to monitor PG&E Corp.'s debt levels and its ability to service its debt obligations in the future.
Peer comparison
Dec 31, 2023