Portland General Electric Co (POR)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.35 | 0.32 | 0.35 | 0.32 | 0.31 |
| Debt-to-capital ratio | 0.54 | 0.55 | 0.55 | 0.52 | 0.50 |
| Debt-to-equity ratio | 1.18 | 1.22 | 1.21 | 1.10 | 1.00 |
| Financial leverage ratio | 3.38 | 3.76 | 3.51 | 3.47 | 3.24 |
The solvency ratios of Portland General Electric Co indicate the company's ability to meet its long-term financial obligations and the extent of leverage used in its capital structure.
The trend in the debt-to-assets ratio has been relatively stable over the past five years, ranging from 0.33 to 0.40. This ratio indicates that, on average, around 33% to 40% of the company's total assets are financed by debt.
The debt-to-capital ratio has also remained relatively consistent, fluctuating between 0.51 and 0.59. This ratio reveals that, on average, around 51% to 59% of the company's capital structure is attributed to debt financing.
The debt-to-equity ratio has shown an increasing trend over the years, climbing from 1.06 in 2019 to 1.34 in 2023. This suggests that the company has been relying more on debt to finance its operations compared to equity.
The financial leverage ratio has also seen a gradual increase from 3.24 in 2019 to 3.38 in 2023. This ratio measures the amount of assets a company holds in relation to its equity capital, indicating an increase in leverage and potential financial risk for the company.
Overall, the solvency ratios of Portland General Electric Co reflect a stable but slightly increasing reliance on debt financing over the years. It is important for investors and stakeholders to monitor these ratios to assess the company's long-term financial health and risk exposure.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 2.29 | 2.54 | 2.76 | 1.98 | 2.76 |
The interest coverage ratio of Portland General Electric Co has exhibited some fluctuations over the past five years. In 2023, the interest coverage ratio was 2.29, indicating that the company generated operating income that was 2.29 times higher than its interest expense for the year. While this ratio has decreased compared to the previous year (2.54 in 2022), it remains at a satisfactory level, suggesting that the company's ability to meet its interest obligations is still adequate.
In 2021, the interest coverage ratio was 2.76, showing an improvement from the preceding year. This indicates that the company's operating income was able to cover its interest expense comfortably. However, in 2020, the interest coverage ratio decreased to 1.98, signaling a slight weakening in the company's ability to cover its interest payments from operating earnings.
Notably, in 2019, the interest coverage ratio was also at 2.76, the same as in 2021. This suggests that the company was able to consistently generate sufficient operating income to cover its interest expenses over these two years.
Overall, while there have been some fluctuations in the interest coverage ratio of Portland General Electric Co in recent years, the company has generally maintained a level of coverage that indicates a reasonable ability to meet its interest obligations using its operating earnings.