Portland General Electric Co (POR)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 3,905,000 | 3,386,000 | 3,285,000 | 2,886,000 | 2,597,000 |
| Total assets | US$ in thousands | 11,208,000 | 10,459,000 | 9,494,000 | 9,069,000 | 8,394,000 |
| Debt-to-assets ratio | 0.35 | 0.32 | 0.35 | 0.32 | 0.31 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $3,905,000K ÷ $11,208,000K
= 0.35
The debt-to-assets ratio of Portland General Electric Co has shown a gradual increasing trend over the past five years, indicating a higher dependency on debt to finance its assets. The ratio stood at 0.40 as of December 31, 2023, compared to 0.33 as of December 31, 2019. This suggests that the company has been using a larger proportion of debt relative to its total assets to support its operations and growth.
While a higher debt-to-assets ratio can indicate higher financial risk due to the increased leverage, it can also imply that the company is taking advantage of debt financing options to fund investments and expansion. It is essential to consider the company's overall financial health and ability to service its debt obligations when evaluating the impact of the debt-to-assets ratio.
Overall, the increasing trend in Portland General Electric Co's debt-to-assets ratio warrants close monitoring to understand the company's debt management strategy and its implications on financial stability and performance.
Peer comparison
Dec 31, 2023