PPL Corporation (PPL)

Debt-to-capital ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	14,611,000	12,889,000	10,666,000	13,615,000	20,721,000
Total stockholders’ equity	US$ in thousands	13,933,000	13,915,000	13,723,000	13,373,000	12,991,000
Debt-to-capital ratio		0.51	0.48	0.44	0.50	0.61

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $14,611,000K ÷ ($14,611,000K + $13,933,000K)
= 0.51

The debt-to-capital ratio of PPL Corp has fluctuated over the past five years, ranging from 0.45 to 0.65. Generally, a higher debt-to-capital ratio indicates that the company is relying more on debt financing relative to equity financing. In the given period, the ratio has shown a decreasing trend from 0.64 in 2019 to 0.53 in 2023. This suggests that PPL Corp may have been reducing its reliance on debt to fund its operations and investments over the years.

In 2023, the debt-to-capital ratio stands at 0.53, indicating that 53% of PPL Corp's capital structure is funded by debt, while the remaining 47% is funded by equity. This level of leverage suggests a moderate reliance on debt, which may be considered manageable depending on the company's financial health and industry norms. It is important for investors and stakeholders to monitor this ratio over time to assess PPL Corp's financial risk and stability.