PG&E Corp (PCG)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 125,698,000 | 118,644,000 | 103,327,000 | 97,856,000 | 85,196,000 |
| Total stockholders’ equity | US$ in thousands | 25,040,000 | 22,823,000 | 20,971,000 | 21,001,000 | 5,136,000 |
| Financial leverage ratio | 5.02 | 5.20 | 4.93 | 4.66 | 16.59 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $125,698,000K ÷ $25,040,000K
= 5.02
The financial leverage ratio of PG&E Corp. has been fluctuating over the past five years. The ratio was the highest in 2019 at 16.59, indicating significant reliance on debt to finance its operations. Subsequently, there was a notable decrease in 2020 to 4.66, suggesting a reduction in debt financing and improved financial stability. However, the ratio increased in 2021 to 4.93 and further in 2022 to 5.20, indicating a potential increase in debt relative to equity in the capital structure. In 2023, the ratio slightly decreased to 5.02, but still reflects a relatively high level of financial leverage compared to 2020. Overall, careful monitoring of the financial leverage ratio is essential to assess PG&E Corp.'s capital structure and debt management strategies.
Peer comparison
Dec 31, 2023