PPL Corporation (PPL)

Solvency ratios

	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
Debt-to-assets ratio	0.39	0.41	0.40	0.40	0.37	0.37	0.38	0.38	0.34	0.35	0.33	0.31	0.32	0.31	0.30	0.29	0.28	0.44	0.45	0.45
Debt-to-capital ratio	0.53	0.54	0.53	0.53	0.51	0.51	0.51	0.51	0.48	0.48	0.47	0.43	0.44	0.42	0.43	0.54	0.50	0.61	0.62	0.61
Debt-to-equity ratio	1.13	1.17	1.12	1.12	1.05	1.03	1.04	1.03	0.93	0.93	0.88	0.77	0.78	0.73	0.74	1.19	1.02	1.55	1.62	1.56
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

PPL Corporation's solvency ratios show the company's ability to meet its financial obligations in the long term.

The Debt-to-assets ratio has been relatively stable around 0.30 to 0.40 over the past few years, indicating that the company is financing a moderate portion of its assets through debt.

The Debt-to-capital ratio has shown a decreasing trend from 0.50 in December 2020 to around 0.40 to 0.50 in recent periods. This suggests that the company's debt relative to its capital structure has improved, indicating a lower reliance on debt financing.

The Debt-to-equity ratio has also displayed a declining trend, moving from 1.02 in December 2020 to around 1.10 in recent periods. This signifies that the company has enhanced its solvency position by reducing its debt relative to its equity.

The Financial leverage ratio, which measures the extent of a company's financial leverage, has decreased steadily from 3.60 in December 2020 to around 2.80 by December 2024. This indicates a reduction in the company's reliance on debt financing to support its operations.

Overall, the solvency ratios of PPL Corporation suggest an improving financial position in terms of its ability to meet its long-term debt obligations, reduce debt dependency, and enhance its financial stability over time.

Coverage ratios

	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
Interest coverage	2.51	2.42	2.49	2.39	2.39	2.61	2.57	2.71	2.87	2.91	2.82	2.32	-0.06	0.15	0.33	0.03	3.81	5.70	5.01	4.66

The interest coverage ratio for PPL Corporation has shown some fluctuations over the periods analyzed. The ratio indicates the company's ability to meet its interest payment obligations from its operating income. A higher ratio is generally favorable as it suggests that the company is more capable of servicing its debt.

The data shows that PPL Corporation's interest coverage ratio was relatively stable and healthy from March 2020 to September 2020, ranging from 4.66 to 5.70. However, there was a significant decline in the ratio by the end of December 2020, dropping to 3.81. This indicates a potential decrease in the company's ability to cover its interest payments with its operating income.

The interest coverage ratio took a sharp downturn in the following periods, reaching its lowest point in March 2021 and September 2021, where the ratio fell to extremely low levels of 0.03 and 0.15, respectively. This suggests a concerning situation where PPL Corporation may have been struggling to cover its interest expenses from its operational earnings.

The ratio showed some improvement in the subsequent periods from March 2022 to December 2024, with the ratio stabilizing around the range of 2.32 to 2.51. Although the ratio remained below the levels seen in the earlier periods, the increasing trend indicates some recovery in PPL Corporation's ability to handle its interest payments.

Overall, the trend in PPL Corporation's interest coverage ratio highlights periods of both strength and weakness in the company's ability to fulfill its interest obligations. It would be important for investors and stakeholders to monitor this ratio closely to assess the company's financial health and debt servicing capabilities.