PPLNEUTRAL

Debt-to-Equity Ratio

1.35x

Higher than 27% of Utilities sector peers

Updated 173h ago

Sector Performance

27th percentile

PPL

1.35x

Sector Median

1.47x

Sector Avg

1.76x

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Deep Analysis

The debt-to-equity ratio measures how much a company relies on borrowed money versus shareholder investment; PPL's current 1.35x means it has $1.35 of debt for every $1 of equity, which is below the utilities sector median of 1.47x and places it in the 27th percentile among peers (lower rank means less debt relative to equity).

The ratio has been increasing: over the last eight quarters the trend is upward, with a quarter-over-quarter rise of +5.5%; year-over-year change is not available. This combination of a below-median level but a rising trend suggests that while PPL currently carries less leverage than most peers, its debt load is growing, which could gradually increase financial risk if the trend continues. On its own, the current level supports a neutral stance—debt is manageable versus the sector—but the upward trajectory warrants monitoring. Overall, this metric neither strongly contradicts nor reinforces the NEUTRAL verdict; it highlights a stable yet shifting risk profile that aligns with a balanced view.

Frequently Asked Questions

What does the Debt-to-Equity Ratio tell investors about PPL?

Shows how much a company is financing its operations through debt vs shareholder funds. High D/E can amplify returns — and losses.

How is the Debt-to-Equity Ratio calculated?

Debt-to-Equity Ratio is calculated as: Total Debt / Shareholders' Equity.

How does PPL's Debt-to-Equity Ratio compare to its sector?

PPL's Debt-to-Equity Ratio of 1.35x compares to a Utilities sector median of 1.47x, placing it in the 27th percentile.

Who are PPL's closest peers by Debt-to-Equity Ratio?

The closest Utilities peers by Debt-to-Equity Ratio include: AWK (1.42x), NEP (1.52x), PEG (1.40x), PNW (1.56x), LNT (1.60x).

The Formula

Total Debt / Shareholders' Equity

Why It Matters

Shows how much a company is financing its operations through debt vs shareholder funds. High D/E can amplify returns — and losses.

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PPL

1.35x

Sector Median

1.47x

Sector Avg

1.76x

How PPL's Debt-to-Equity Ratio compares to sector peers.

Not financial advice. Research tool only. Data may be delayed.