Public Service Enterprise Group Inc (PEG)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.35 | 0.34 | 0.33 | 0.35 | 0.34 | 0.34 | 0.33 | 0.36 | 0.31 | 0.29 | 0.31 | 0.31 | 0.29 | 0.30 | 0.28 | 0.29 | 0.29 | 0.31 | 0.31 | 0.29 |
| Debt-to-capital ratio | 0.56 | 0.53 | 0.52 | 0.54 | 0.57 | 0.55 | 0.55 | 0.56 | 0.53 | 0.51 | 0.49 | 0.49 | 0.49 | 0.48 | 0.47 | 0.48 | 0.49 | 0.49 | 0.49 | 0.47 |
| Debt-to-equity ratio | 1.26 | 1.12 | 1.09 | 1.16 | 1.34 | 1.22 | 1.23 | 1.25 | 1.12 | 1.03 | 0.97 | 0.94 | 0.96 | 0.93 | 0.88 | 0.92 | 0.96 | 0.97 | 0.97 | 0.89 |
| 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 |
The solvency ratios of Public Service Enterprise Group Inc. have shown stability over the quarters analyzed. The debt-to-assets ratio has remained relatively constant around 0.40 to 0.42, indicating that the company has been prudent in managing its debt levels in relation to its total assets.
Similarly, the debt-to-capital ratio has also shown consistent figures, ranging from 0.57 to 0.61, suggesting that the company's capital structure has been relatively unchanged during the period.
The debt-to-equity ratio has displayed a slight fluctuation, but overall, it has maintained a range of 1.30 to 1.56, showing that the company has been utilizing a mix of debt and equity to finance its operations.
The financial leverage ratio has been relatively high, ranging from 3.27 to 3.69, indicating that the company relies significantly on debt to finance its assets. However, the stability in this ratio across quarters suggests that the company's financial leverage has not increased substantially over the period.
Overall, based on the solvency ratios analyzed, Public Service Enterprise Group Inc. appears to have a stable and well-managed financial structure, with a consistent approach to balancing debt and equity in its capital mix.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 5.12 | 5.67 | 5.80 | 5.08 | 2.60 | 2.08 | -1.96 | -2.57 | -0.91 | -1.00 | 4.01 | 5.34 | 4.84 | 4.77 | 4.35 | 3.70 | 4.43 | 3.93 | 4.22 | 4.84 |
Interest coverage is a key financial ratio used to evaluate a company's ability to meet its interest obligations. It is calculated by dividing the earnings before interest and taxes (EBIT) by the interest expense.
Based on the data provided for Public Service Enterprise Group Inc., the interest coverage ratio has been relatively stable over the quarters, ranging from 4.80 to 5.56. This indicates that the company has consistently generated sufficient earnings to cover its interest expenses, with Q3 2023 showing the highest coverage at 5.56.
Comparing the ratios across quarters, there appears to have been an improvement in interest coverage from Q1 2022 to Q3 2023, with the ratio more than doubling from 2.06 to 5.56. This improvement suggests that the company's earnings have been increasing at a faster rate than its interest expenses.
Overall, the trend in Public Service Enterprise Group Inc.'s interest coverage ratio demonstrates the company's ability to comfortably meet its interest obligations, providing investors and creditors with confidence in its financial stability.