PPL Corporation (PPL)

Debt-to-equity 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
Long-term debt	US$ in thousands	14,611,000	14,484,000	14,481,000	14,481,000	12,889,000	12,977,000	12,153,000	10,668,000	10,666,000	10,665,000	11,095,000	13,715,000	13,615,000	21,243,000	21,098,000	20,670,000	20,721,000	21,547,000	20,965,000	21,114,000
Total stockholders’ equity	US$ in thousands	13,933,000	14,012,000	13,959,000	14,033,000	13,915,000	13,881,000	13,870,000	13,865,000	13,723,000	14,576,000	14,952,000	11,554,000	13,373,000	13,686,000	13,044,000	13,241,000	12,991,000	11,902,000	11,983,000	12,172,000
Debt-to-equity ratio		1.05	1.03	1.04	1.03	0.93	0.93	0.88	0.77	0.78	0.73	0.74	1.19	1.02	1.55	1.62	1.56	1.60	1.81	1.75	1.73

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $14,611,000K ÷ $13,933,000K
= 1.05

The debt-to-equity ratio of PPL Corp has shown a generally increasing trend over the past eight quarters, indicating a shift towards a higher level of financial leverage. In Q4 2023, the ratio stood at 1.12, which means that for every dollar of equity, the company had $1.12 in debt. This suggests that PPL Corp is relying more on debt financing to support its operations and growth.

The increase in the debt-to-equity ratio from Q1 2022 to Q4 2023 signals a potential increase in financial risk for the company, as higher levels of debt could lead to higher interest expenses and reduced financial flexibility. It is important for investors and stakeholders to closely monitor this trend to assess the company's ability to manage its debt levels while maintaining profitability and growth initiatives.