Public Service Enterprise Group Inc (PEG)
Debt-to-equity 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-equity ratio | 1.29 | 1.26 | 1.34 | 1.12 | 0.96 |
December 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $18,964,000K ÷ $14,711,000K
= 1.29
The debt-to-equity ratio of Public Service Enterprise Group Inc has shown an increasing trend over the five years analyzed. Starting at 0.96 on December 31, 2020, the ratio increased to 1.12 by December 31, 2021, indicating a higher reliance on debt to finance the company's operations. This trend continued with the ratio further rising to 1.34 by December 31, 2022.
However, in the subsequent years, there was a slight decrease in the ratio, as it decreased to 1.26 by December 31, 2023, and then slightly increased to 1.29 by December 31, 2024. Overall, the debt-to-equity ratio indicates that the company has been gradually increasing its debt levels relative to the equity being used to fund its operations. This could potentially signify a higher financial risk, as a higher debt-to-equity ratio indicates a greater portion of financing coming from debt rather than shareholder equity.
It is important for investors and stakeholders to monitor this ratio over time to assess the company's financial health and risk profile.
Peer comparison
Dec 31, 2024