Debt-to-Equity Ratio

PPL’s debt-to-equity ratio of 1.35x means the company uses $1.35 of debt for every $1 of shareholders’ equity, measuring its financial leverage.

This is below the Utilities sector median of 1.51x, placing PPL in the 33rd percentile among peers, indicating lower leverage than most. The metric has been stable over the last eight quarters, with a year-over-year increase of 53.4% (rising from 0.88x to 1.35x) and no change quarter-over-quarter. The combination of a below-median level and a recent sharp yearly rise followed by stability suggests moderate leverage that has increased but is not currently escalating—a potential concern if debt continues growing, but not a pressing risk. This metric supports the overall NEUTRAL verdict because the current ratio is not extreme relative to the sector, yet the substantial yearly increase warrants caution rather than bullishness.

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