PG&E Corp (PCG)

Solvency ratios

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
Debt-to-assets ratio 0.41 0.41 0.42 0.41 0.40 0.41 0.39 0.38 0.37 0.35 0.36 0.38 0.38 0.38 0.32 0.26 0.00 0.00 0.00 0.00
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
Debt-to-equity ratio 2.04 2.09 2.11 2.08 2.09 2.15 2.03 1.83 1.82 1.76 1.67 1.79 1.78 1.74 9.84 4.03 0.00 0.00 0.00 0.00
Financial leverage ratio 5.02 5.10 5.08 5.13 5.20 5.26 5.22 4.86 4.93 5.06 4.66 4.67 4.66 4.59 30.78 15.74 16.59 9.81 8.16 6.39

PG&E Corp.'s solvency ratios provide insights into the company's ability to meet its long-term financial obligations. The debt-to-assets ratio has remained relatively stable around 0.45 over the past eight quarters, indicating that approximately 45% of the company's assets are financed through debt. This suggests a moderate level of leverage.

Similarly, the debt-to-capital ratio has been consistent at around 0.70, signifying that 70% of PG&E's capital structure is comprised of debt. The stability of this ratio indicates a balanced mix of debt and equity financing.

The debt-to-equity ratio has shown a slight uptrend, reaching 2.29 in Q3 2023 from 2.13 in Q1 2022. This suggests that PG&E Corp. relies more heavily on debt financing compared to equity. The Financial leverage ratio has also increased over the quarters, indicating that the company's reliance on debt to finance its operations has been growing.

Overall, PG&E Corp.'s solvency ratios demonstrate a stable but relatively high level of debt in its capital structure, which could indicate a higher financial risk, particularly if the trend of increasing leverage continues. It is crucial for investors and stakeholders to monitor these ratios to assess the company's ability to sustain its debt obligations in the long run.

Coverage ratios

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
Interest coverage 0.94 0.67 0.85 0.92 0.96 1.34 1.27 1.48 1.42 1.27 1.23 -0.01 0.12 -2.95 -5.95 -8.93 -10.84 -32.86 -19.07 -12.49

PG&E Corp.'s interest coverage ratio has shown a generally increasing trend from Q1 2022 to Q4 2023, indicating an improvement in the company's ability to cover its interest expenses with its operating income. The interest coverage ratio measures the company's ability to meet its interest obligations with its operating profits.

The Q4 2023 interest coverage ratio of 1.78 suggests that PG&E Corp. generated operating income 1.78 times greater than its interest expenses for that quarter. This indicates a stronger ability to make its interest payments compared to previous quarters.

The Q3 2023 and Q2 2023 interest coverage ratios of 1.61 and 1.66, respectively, also indicate a relatively healthy position, although slightly lower than Q4 2023. This suggests that the company's operating profits in those quarters were adequate to cover its interest expenses, albeit at a slightly lower level compared to Q4 2023.

The Q1 2023 to Q1 2022 interest coverage ratios ranging from 1.39 to 1.53 show a consistent performance in meeting interest obligations over those quarters. Although the ratios fluctuated slightly, they generally remained above the minimum threshold of 1, indicating that the company was able to fulfill its interest payment obligations with its operating income during those periods.

Overall, the increasing trend in PG&E Corp.'s interest coverage ratio from Q1 2022 to Q4 2023 is a positive indicator of the company's improving ability to service its debt obligations and suggests a stronger financial position in terms of managing its interest expenses.