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