PG&E Corp (PCG)

Solvency ratios

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Debt-to-assets ratio 0.40 0.41 0.40 0.42 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
Debt-to-capital ratio 0.64 0.67 0.67 0.67 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
Debt-to-equity ratio 1.78 2.04 2.01 2.08 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
Financial leverage ratio 4.43 4.93 4.98 4.96 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

PG&E Corp's solvency ratios indicate the company's ability to meet its long-term financial obligations. The Debt-to-assets ratio has been gradually increasing over the years, reaching 0.40 by December 31, 2024, which implies that 40% of the company's assets are financed by debt.

The Debt-to-capital ratio, on the other hand, shows a fluctuating trend but remained relatively stable around 0.67 from March 31, 2024, to December 31, 2024. This ratio indicates that 67% of the company's capital structure is made up of debt.

The Debt-to-equity ratio shows a declining trend since June 30, 2020, reaching 1.78 by December 31, 2024. This ratio indicates that the company's debt is 1.78 times its equity, reflecting the company's financial leverage.

The Financial leverage ratio, which measures the company's total assets relative to equity, shows a declining trend, indicating a decreasing reliance on debt to finance its operations. The ratio decreased from 30.78 on June 30, 2020, to 4.43 by December 31, 2024, signifying improvements in the company's leverage position.

Overall, PG&E Corp's solvency ratios suggest a mixed picture of its financial health, with a gradual increase in its debt ratios but also improvements in its financial leverage and debt-to-equity ratios over the years.

Coverage ratios

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Interest coverage 1.46 1.41 1.26 1.12 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

The interest coverage ratio for PG&E Corp shows a fluctuating trend over the period from March 2020 to December 2024. The interest coverage ratio is a measure of a company's ability to cover its interest expenses with its operating income.

PG&E had a negative interest coverage ratio from March 2020 to March 2021, indicating that the company's operating income was insufficient to cover its interest expenses during those periods. This could be a cause for concern as it suggests financial distress and may raise questions about the company's ability to meet its debt obligations.

However, starting from June 2021, PG&E's interest coverage ratio turned positive and showed an improving trend, reaching its peak at 1.46 in December 2024. This upward trend indicates that the company's operating income has improved sufficiently to cover its interest expenses, reflecting a more stable financial position.

Overall, while PG&E Corp faced challenges with negative interest coverage in the past, the company has made progress in improving its ability to cover interest expenses. However, investors and stakeholders should continue to monitor the interest coverage ratio to ensure that PG&E's financial health remains strong.