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
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