Public Service Enterprise Group Inc (PEG)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 54,640,000 | 50,741,000 | 48,718,000 | 48,999,000 | 50,050,000 |
| Total stockholders’ equity | US$ in thousands | 14,711,000 | 14,098,000 | 12,352,000 | 13,542,000 | 15,123,000 |
| Financial leverage ratio | 3.71 | 3.60 | 3.94 | 3.62 | 3.31 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $54,640,000K ÷ $14,711,000K
= 3.71
The financial leverage ratio for Public Service Enterprise Group Inc has shown a consistent increase from 3.31 in December 2020 to 3.71 in December 2024. This ratio indicates that the company relies more on debt financing compared to equity. The rising trend in the leverage ratio may suggest a growing level of financial risk for the company, as higher leverage implies a greater reliance on debt to fund operations and investments. It is essential for stakeholders to closely monitor this ratio, as an excessively high leverage ratio can potentially lead to financial instability, especially during economic downturns or unfavorable market conditions.
Peer comparison
Dec 31, 2024