PPL Corporation (PPL)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 14,077,000 | 13,933,000 | 13,915,000 | 13,723,000 | 13,373,000 |
| Debt-to-capital ratio | 0.53 | 0.51 | 0.48 | 0.44 | 0.50 |
December 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $15,952,000K ÷ ($15,952,000K + $14,077,000K)
= 0.53
The debt-to-capital ratio of PPL Corporation has shown some fluctuations over the years. As of December 31, 2020, the ratio stood at 0.50, indicating that 50% of the company's capital was financed through debt. Subsequently, the ratio decreased to 0.44 by December 31, 2021, suggesting a reduction in the reliance on debt financing.
However, by December 31, 2022, the debt-to-capital ratio increased to 0.48, signifying a slight uptick in debt relative to capital. This trend continued in the following years, with the ratio reaching 0.51 as of December 31, 2023, and further increasing to 0.53 by December 31, 2024.
Overall, the fluctuation in the debt-to-capital ratio of PPL Corporation over the years indicates varying levels of debt utilization in the company's capital structure. It is essential for stakeholders to monitor these changes to assess the company's leverage and financial risk position accurately.
Peer comparison
Dec 31, 2024