Public Service Enterprise Group Inc (PEG)

Solvency ratios

Dec 31, 2024 Sep 30, 2024 Mar 31, 2024 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
Debt-to-assets ratio 0.35 0.35 0.36 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
Debt-to-capital ratio 0.56 0.54 0.54 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
Debt-to-equity ratio 1.29 1.18 1.19 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
Financial leverage ratio 3.71 3.36 3.33 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

Public Service Enterprise Group Inc's solvency ratios provide insight into the company's ability to meet its long-term obligations and the extent of its financial leverage.

1. Debt-to-assets ratio remained relatively stable between 0.28 to 0.36 over the period analyzed. This indicates that around 28% to 36% of the company's assets were financed by debt.

2. Debt-to-capital ratio fluctuated between 0.47 to 0.57 during the period. The ratio peaked in December 2022 at 0.57, suggesting that debt made up 57% of the company's capital structure.

3. Debt-to-equity ratio ranged from 0.88 to 1.34, with a noticeable increase from 1.03 in September 2021 to 1.34 in December 2022. This implies that for each dollar of equity, the company had $1.34 in debt by the end of 2022.

4. Financial leverage ratio varied between 3.08 to 3.94, with the highest ratio recorded in December 2022. This indicates that the company's financial leverage increased over the period, reaching a ratio of 3.94 by December 2022.

Overall, the trend in these solvency ratios suggests that Public Service Enterprise Group Inc's reliance on debt increased gradually during the analyzed period, potentially impacting its financial risk profile and ability to absorb financial shocks.

Coverage ratios

Dec 31, 2024 Sep 30, 2024 Mar 31, 2024 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
Interest coverage 3.41 3.38 3.75 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

The interest coverage ratio of Public Service Enterprise Group Inc has shown fluctuations over the observed time period. The ratio is calculated by dividing the earnings before interest and taxes (EBIT) by the interest expense. A higher ratio indicates the company is more capable of meeting its interest obligations.

From December 2019 to March 2021, the interest coverage ratio improved steadily, peaking at 5.34 in March 2021, indicating a strong ability to cover interest payments. However, in the following quarters, the ratio declined, dropping to -1.00 in September 2021 and falling further to -2.57 in March 2022, indicating that the company's earnings were insufficient to cover its interest expenses during these periods.

The ratio improved thereafter, reaching 5.80 in June 2023, signaling a recovery in the company's ability to cover interest costs. Subsequently, from September 2023 to December 2024, the ratio remained relatively stable, ranging between 3.38 and 5.12, indicating a moderate to strong ability to meet interest payments.

It is essential for investors and stakeholders to monitor Public Service Enterprise Group Inc's interest coverage ratio closely to assess the company's financial health and its ability to manage debt obligations effectively. Fluctuations in the ratio may signify changes in the company's profitability or financial leverage, highlighting the importance of conducting a detailed analysis of the underlying factors influencing the ratio.