PPL Corporation (PPL)
Debt-to-assets ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 15,952,000 | 14,611,000 | 12,889,000 | 10,666,000 | 13,615,000 |
| Total assets | US$ in thousands | 41,069,000 | 39,236,000 | 37,837,000 | 33,223,000 | 48,116,000 |
| Debt-to-assets ratio | 0.39 | 0.37 | 0.34 | 0.32 | 0.28 |
December 31, 2024 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $15,952,000K ÷ $41,069,000K
= 0.39
The debt-to-assets ratio of PPL Corporation has been gradually increasing over the past five years, from 0.28 as of December 31, 2020, to 0.39 as of December 31, 2024. This indicates that the company's reliance on debt to finance its assets has been growing over the period under evaluation. It is essential to monitor this trend closely, as a higher debt-to-assets ratio may signify increased financial risk and potential challenges in meeting debt obligations in the future. A rising trend in this ratio could also raise concerns among investors and creditors regarding the company's ability to manage its debt levels effectively.
Peer comparison
Dec 31, 2024