Portland General Electric Co (POR)
Solvency ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 3.31 | 3.27 | 3.32 | 3.35 | 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 |
The solvency ratios of Portland General Electric Co indicate a consistently strong financial position in terms of its debt obligations and capital structure.
1. Debt-to-assets ratio: This ratio remained at 0.00 across all periods, indicating that the company's total debt is negligible compared to its total assets. A lower debt-to-assets ratio is generally favorable as it suggests lower financial risk and higher financial stability.
2. Debt-to-capital ratio: Similar to the debt-to-assets ratio, the debt-to-capital ratio also stood at 0.00 consistently throughout the periods. This suggests that the company has minimal debt relative to its total capital, which includes both debt and equity. A low debt-to-capital ratio signifies a healthy balance between debt and equity financing.
3. Debt-to-equity ratio: The debt-to-equity ratio was consistently at 0.00 for all periods, indicating that the company's debt level was very low compared to its equity. A low debt-to-equity ratio is generally considered favorable as it implies lower financial risk and a strong equity base to support operations and growth.
4. Financial leverage ratio: The financial leverage ratio fluctuated slightly over the periods but generally remained within a narrow range between 3.21 to 3.76. This ratio reflects the company's reliance on debt to finance its operations and investments. While the values were relatively stable, it is important to monitor any significant increases in the financial leverage ratio, as higher leverage can increase financial risk and impact the company's ability to meet its debt obligations.
Overall, based on the solvency ratios analyzed, Portland General Electric Co appears to have a healthy financial position with minimal debt levels relative to its assets, capital, and equity. The company's stable financial leverage ratio also indicates a balanced approach to financing its operations.
Coverage ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 2.66 | 2.89 | 2.70 | 3.24 | 3.76 | 4.33 | 5.15 | 5.34 | 5.33 | 5.50 | 5.53 | 5.37 | 5.77 | 6.02 | 5.27 | 5.33 | 5.36 | 5.27 | 6.14 | 6.13 |
Portland General Electric Co's interest coverage ratio has shown a declining trend over the analyzed period, starting at 6.13 in March 2020 and dropping to 2.66 by December 2024. Despite some fluctuations, the general direction of the interest coverage ratio is downward, indicating a potential decrease in the company's ability to cover its interest expenses with its operating income.
A decreasing interest coverage ratio can signal increasing financial risk for the company, as it may struggle to meet its interest obligations in the future. Investors and creditors typically view a declining interest coverage ratio as a red flag, as it suggests that the company's ability to service its debt may be weakening.
It is important for Portland General Electric Co to closely monitor and address the factors contributing to the decline in its interest coverage ratio, such as increasing debt levels, declining operating income, or rising interest expenses. Taking proactive steps to improve the company's financial health and enhance its ability to cover interest payments can help mitigate potential risks associated with the declining interest coverage ratio.