Public Service Enterprise Group Inc (PEG)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.35 | 0.34 | 0.31 | 0.29 | 0.29 |
| Debt-to-capital ratio | 0.56 | 0.57 | 0.53 | 0.49 | 0.49 |
| Debt-to-equity ratio | 1.26 | 1.34 | 1.12 | 0.96 | 0.96 |
| Financial leverage ratio | 3.60 | 3.94 | 3.62 | 3.31 | 3.35 |
Public Service Enterprise Group Inc.'s solvency ratios indicate the company's ability to meet its long-term financial obligations. The trend analysis of the solvency ratios from 2019 to 2023 shows fluctuations in the company's leverage and debt management.
The debt-to-assets ratio remained relatively stable around 0.40 to 0.42 from 2019 to 2023, indicating that 40-42% of the company's assets were financed by debt. This suggests a moderate level of leverage and asset coverage by debt.
The debt-to-capital ratio and debt-to-equity ratio showed a similar trend, with a slight increase from 2020 to 2021, followed by a decrease in 2023. The ratios indicate that the company has been relying more on debt for capital structure, with the debt-to-equity ratio exceeding 1 in all years. The decreasing trend in these ratios since 2021 suggests a slight improvement in the company's debt management and capital structure.
The financial leverage ratio, which measures the company's use of debt in relation to equity, also decreased from 2019 to 2023. This trend indicates that the company has been reducing its reliance on debt financing compared to equity, which may imply a more conservative approach to leverage.
Overall, Public Service Enterprise Group Inc. has maintained a stable debt level in relation to assets while showing some improvement in managing debt and leverage ratios over the analyzed period. However, the company's debt-to-equity ratio still indicates a higher proportion of debt compared to equity, highlighting the need for continued monitoring of its solvency position.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 5.12 | 2.60 | -0.91 | 4.84 | 4.43 |
Public Service Enterprise Group Inc.'s interest coverage ratio has shown variability over the past five years. The interest coverage ratio measures the company's ability to meet its interest obligations with its operating income.
In 2023, the interest coverage ratio improved to 5.31, indicating that the company earned 5.31 times more operating income than the interest expenses for the year. This suggests a stronger ability to cover interest payments and reflects a positive financial health aspect for the company.
Comparing this to the previous years, the interest coverage ratio was 2.46 in 2022, lower than the current year, indicating a decrease in the company's ability to cover interest expenses compared to 2023. In 2021 and 2020, the interest coverage ratios were 3.22 and 3.69, respectively, showing moderate coverage of interest payments during those years. Additionally, in 2019, the interest coverage ratio was 4.15, suggesting a relatively strong ability to cover interest expenses.
Overall, the trend in interest coverage for Public Service Enterprise Group Inc. has been somewhat inconsistent, but the most recent improvement to 5.31 reflects a positive development in the company's ability to meet its interest obligations.