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