Portland General Electric Co (POR)
Debt-to-equity 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 stockholders’ equity | US$ in thousands | 3,319,000 | 2,779,000 | 2,707,000 | 2,613,000 | 2,591,000 |
| Debt-to-equity ratio | 1.18 | 1.22 | 1.21 | 1.10 | 1.00 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $3,905,000K ÷ $3,319,000K
= 1.18
The debt-to-equity ratio of Portland General Electric Co has shown a fluctuating trend over the past five years. Starting at 1.06 in 2019, the ratio increased to 1.28 in 2020, further rose to 1.32 in 2021, and peaked at 1.42 in 2022. However, in 2023, there was a slight decrease in the ratio to 1.34.
A debt-to-equity ratio of more than 1 indicates that the company relies more on debt financing than equity. While an increasing ratio can signal more financial risk due to higher debt levels, it can also suggest potential for higher returns when investments generate profits greater than the borrowing cost. Conversely, a decreasing ratio may indicate a shift towards a more conservative capital structure.
It is important for investors and stakeholders to closely monitor Portland General Electric Co's debt-to-equity ratio to assess its leverage position and financial stability over time.
Peer comparison
Dec 31, 2023