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.