PPL Corporation (PPL)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 39,236,000 | 37,837,000 | 33,223,000 | 48,116,000 | 45,680,000 |
| Total stockholders’ equity | US$ in thousands | 13,933,000 | 13,915,000 | 13,723,000 | 13,373,000 | 12,991,000 |
| Financial leverage ratio | 2.82 | 2.72 | 2.42 | 3.60 | 3.52 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $39,236,000K ÷ $13,933,000K
= 2.82
The financial leverage ratio of PPL Corp has exhibited fluctuations over the past five years. In 2023, the ratio stands at 2.82, which indicates that the company is financed primarily through debt. Comparing this figure to the ratios from the previous years, we observe an increasing trend from 2.42 in 2021 to 3.60 in 2020, before slightly decreasing to 2.72 in 2022. Fluctuations in the financial leverage ratio can reflect varying levels of debt utilization and capital structure adjustments within the company. Overall, a higher financial leverage ratio suggests a higher degree of financial risk due to increased reliance on debt financing. It would be pertinent to further analyze the company's debt management strategies and overall financial health to better understand the implications of these changes in the financial leverage ratio.
Peer comparison
Dec 31, 2023