PPL Corporation (PPL)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 41,069,000 | 39,236,000 | 37,837,000 | 33,223,000 | 48,116,000 |
| Total stockholders’ equity | US$ in thousands | 14,077,000 | 13,933,000 | 13,915,000 | 13,723,000 | 13,373,000 |
| Financial leverage ratio | 2.92 | 2.82 | 2.72 | 2.42 | 3.60 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $41,069,000K ÷ $14,077,000K
= 2.92
The financial leverage ratio of PPL Corporation has shown a declining trend from 3.60 in December 31, 2020, to 2.42 in December 31, 2021, before increasing slightly to 2.72 in December 31, 2022, 2.82 in December 31, 2023, and finally 2.92 in December 31, 2024. This indicates that the company has been reducing its reliance on debt to finance its operations over the years, potentially improving its financial stability and reducing risk. However, the increase in the financial leverage ratio in the most recent year may suggest a shift back towards a slightly higher level of debt utilization. It would be important for stakeholders to monitor this trend to ensure that the company maintains a healthy balance between debt and equity in its capital structure.
Peer comparison
Dec 31, 2024