Public Service Enterprise Group Inc (PEG)

Financial leverage ratio

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Total assets US$ in thousands 50,741,000 49,552,000 49,505,000 49,409,000 48,718,000 47,741,000 49,608,000 47,774,000 48,999,000 49,426,000 49,292,000 50,206,000 50,050,000 49,576,000 48,780,000 48,365,000 47,730,000 46,815,000 46,280,000 45,756,000
Total stockholders’ equity US$ in thousands 14,098,000 15,166,000 15,053,000 14,726,000 12,352,000 13,251,000 13,428,000 13,598,000 13,542,000 14,069,000 15,878,000 16,277,000 15,123,000 15,836,000 15,491,000 15,249,000 14,258,000 14,925,000 14,754,000 14,814,000
Financial leverage ratio 3.60 3.27 3.29 3.36 3.94 3.60 3.69 3.51 3.62 3.51 3.10 3.08 3.31 3.13 3.15 3.17 3.35 3.14 3.14 3.09

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $50,741,000K ÷ $14,098,000K
= 3.60

The financial leverage ratio of Public Service Enterprise Group Inc. has exhibited a fluctuating trend over the past eight quarters. The ratio has ranged between 3.27 and 3.69 during this period. In the most recent quarter, Q4 2023, the ratio stood at 3.28, slightly lower than the prior quarter.

The declining trend in the financial leverage ratio from Q4 2022 to Q4 2023 indicates a reduction in the company's reliance on debt to finance its operations and investments. A lower financial leverage ratio suggests that a smaller proportion of the company's assets are funded through debt, which may signify a stronger financial position and reduced financial risk.

However, it is important to note that a financial leverage ratio of over 3 indicates that a significant portion of the company's assets is financed through debt. Investors and lenders may monitor this ratio closely to assess the company's ability to meet its debt obligations and manage financial risk effectively.

Overall, the decreasing trend in the financial leverage ratio of Public Service Enterprise Group Inc. signals a possible shift towards a more conservative capital structure, potentially increasing the company's financial stability in the long term.


Peer comparison

Dec 31, 2023