Public Service Enterprise Group Inc (PEG)
Debt-to-capital ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 18,964,000 | 17,784,000 | 16,495,000 | 15,219,000 | 14,496,000 |
| Total stockholders’ equity | US$ in thousands | 14,711,000 | 14,098,000 | 12,352,000 | 13,542,000 | 15,123,000 |
| Debt-to-capital ratio | 0.56 | 0.56 | 0.57 | 0.53 | 0.49 |
December 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $18,964,000K ÷ ($18,964,000K + $14,711,000K)
= 0.56
The debt-to-capital ratio of Public Service Enterprise Group Inc has been steadily increasing over the past five years, from 0.49 at the end of 2020 to 0.56 at the end of 2024. This trend indicates a higher proportion of the company's capital structure being financed by debt relative to its total capital. While a higher debt-to-capital ratio can be a sign of leveraging for growth or investment opportunities, it also suggests increased financial risk and potential vulnerability to economic downturns or rising interest rates. It is important for investors and stakeholders to closely monitor this ratio to assess the company's ability to manage its debt levels effectively and maintain financial stability.
Peer comparison
Dec 31, 2024