PG&E Corp (PCG)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 133,660,000 | 125,698,000 | 118,644,000 | 103,327,000 | 97,856,000 |
| Total stockholders’ equity | US$ in thousands | 30,149,000 | 25,040,000 | 22,823,000 | 20,971,000 | 21,001,000 |
| Financial leverage ratio | 4.43 | 5.02 | 5.20 | 4.93 | 4.66 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $133,660,000K ÷ $30,149,000K
= 4.43
The financial leverage ratio for PG&E Corp has shown an increasing trend from 4.66 in 2020 to 5.02 in 2023, before decreasing slightly to 4.43 in 2024. This indicates that the company has been relying more on debt to finance its operations, which can pose higher financial risk. A higher financial leverage ratio suggests a higher proportion of debt in the company's capital structure, potentially leading to higher interest payments and reduced financial flexibility. It would be important for PG&E Corp to carefully manage its debt levels to ensure sustainability and mitigate financial risks associated with high leverage.
Peer comparison
Dec 31, 2024