PPL Corporation (PPL)
Financial leverage 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 | ||
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Total assets | US$ in thousands | 39,236,000 | 38,629,000 | 38,296,000 | 38,302,000 | 37,837,000 | 37,378,000 | 37,062,000 | 34,107,000 | 33,223,000 | 34,171,000 | 36,759,000 | 47,781,000 | 48,116,000 | 47,924,000 | 46,520,000 | 46,328,000 | 45,680,000 | 44,559,000 | 44,204,000 | 44,567,000 |
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 |
Financial leverage ratio | 2.82 | 2.76 | 2.74 | 2.73 | 2.72 | 2.69 | 2.67 | 2.46 | 2.42 | 2.34 | 2.46 | 4.14 | 3.60 | 3.50 | 3.57 | 3.50 | 3.52 | 3.74 | 3.69 | 3.66 |
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 shown a gradual increase over the past eight quarters, reaching 2.82 in Q4 2023 from 2.46 in Q1 2022. This indicates that the company has been relying more on debt to finance its operations and investments compared to its equity. It suggests that PPL Corp has been leveraging its balance sheet more aggressively, which can amplify returns but also increase financial risk. The consistent upward trend in the financial leverage ratio over the quarters may indicate a strategic shift towards leveraging up the company's capital structure for growth opportunities or acquisitions. However, investors and creditors should closely monitor this trend to assess the company's ability to service its debt obligations and maintain financial stability.
Peer comparison
Dec 31, 2023