Portland General Electric Co (POR)
Financial leverage ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 11,208,000 | 10,603,000 | 10,370,000 | 10,151,000 | 10,459,000 | 9,849,000 | 9,783,000 | 9,723,000 | 9,494,000 | 9,542,000 | 9,099,000 | 9,069,000 | 9,069,000 | 8,869,000 | 8,805,000 | 8,470,000 | 8,394,000 | 8,154,000 | 7,997,000 | 7,948,000 |
| Total stockholders’ equity | US$ in thousands | 3,319,000 | 3,295,000 | 3,200,000 | 3,112,000 | 2,779,000 | 2,760,000 | 2,738,000 | 2,709,000 | 2,707,000 | 2,675,000 | 2,661,000 | 2,675,000 | 2,613,000 | 2,595,000 | 2,646,000 | 2,638,000 | 2,591,000 | 2,564,000 | 2,542,000 | 2,548,000 |
| Financial leverage ratio | 3.38 | 3.22 | 3.24 | 3.26 | 3.76 | 3.57 | 3.57 | 3.59 | 3.51 | 3.57 | 3.42 | 3.39 | 3.47 | 3.42 | 3.33 | 3.21 | 3.24 | 3.18 | 3.15 | 3.12 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $11,208,000K ÷ $3,319,000K
= 3.38
The financial leverage ratio of Portland General Electric Co has shown fluctuations over the past eight quarters. The ratio indicates that the company's financial leverage has ranged between 3.22 and 3.76 during this period.
A higher financial leverage ratio suggests that the company relies more on debt financing to fund its operations and investments, which can increase the risk associated with its financial structure. Conversely, a lower ratio signifies a lower reliance on debt and a more conservative approach to financing.
In the case of Portland General Electric Co, the decreasing trend from Q4 2022 to Q2 2023 indicates a potential reduction in the company's reliance on debt financing, which could be a positive signal in terms of financial risk management. However, the ratio increased in Q4 2023, reflecting a higher level of financial leverage compared to the previous quarters.
Overall, the trend in the financial leverage ratio of Portland General Electric Co suggests a varying level of reliance on debt financing over the analyzed period, highlighting the importance of monitoring debt levels and their impact on the company's financial stability and performance.
Peer comparison
Dec 31, 2023