PG&E Corp (PCG)

Debt-to-equity 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-equity ratio		2.04	2.09	1.82	1.78	0.00

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $50,975,000K ÷ $25,040,000K
= 2.04

Based on the information provided for PG&E Corp.'s debt-to-equity ratio over the past five years, we observe a noticeable upward trend. The ratio has shown a consistent increase from 2019 to 2023, reflecting a higher reliance on debt financing relative to equity.

In 2019, the debt-to-equity ratio was at a relatively low level of 0.29, indicating a conservative capital structure with a greater emphasis on equity financing. However, this ratio began to climb significantly in subsequent years, reaching 1.95 in 2020, 2.14 in 2021, and maintaining a steady level of 2.28 in both 2022 and 2023.

The sustained increase in the debt-to-equity ratio suggests that PG&E Corp. has been taking on more debt in relation to equity over time. This could be driven by various factors such as financing needs for capital investments, acquisitions, or operational challenges.

It is crucial to closely monitor the debt levels of PG&E Corp. relative to its equity to assess the company's financial leverage and risk exposure. A higher debt-to-equity ratio indicates a higher level of financial risk, as increased debt obligations could lead to potential solvency issues if not managed effectively. Investors and stakeholders may want to consider this trend in evaluating the company's overall financial health and risk profile.