PPL Corporation (PPL)

Financial leverage ratio

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Total assets US$ in thousands 41,069,000 40,472,000 39,839,000 39,631,000 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
Total stockholders’ equity US$ in thousands 14,077,000 14,092,000 14,065,000 14,058,000 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
Financial leverage ratio 2.92 2.87 2.83 2.82 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

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 fluctuations over the reported periods, ranging from a high of 4.14 on March 31, 2021, to a low of 2.34 on September 30, 2021. Generally, a decreasing trend is observed in the more recent periods, indicating a reduction in financial leverage. This suggests that the company has been using less debt to finance its operations and investments, which could be a positive sign for investors and creditors as it lowers the company's risk of financial distress. However, it is important to monitor this ratio over time to ensure the company maintains a healthy balance between debt and equity in its capital structure.