Prudential (FRA:PRU) Debt-to-Equity

: 0.27 (As of Dec. 2023)

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Prudential's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was €641 Mil. Prudential's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was €3,828 Mil. Prudential's Total Stockholders Equity for the quarter that ended in Dec. 2023 was €16,344 Mil. Prudential's debt to equity for the quarter that ended in Dec. 2023 was 0.27.

A high debt to equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.

The historical rank and industry rank for Prudential's Debt-to-Equity or its related term are showing as below:

FRA:PRU' s Debt-to-Equity Range Over the Past 10 Years
Min: 0.27 Med: 0.54 Max: 0.73
Current: 0.27

During the past 13 years, the highest Debt-to-Equity Ratio of Prudential was 0.73. The lowest was 0.27. And the median was 0.54.

FRA:PRU's Debt-to-Equity is ranked worse than
52.09% of 382 companies
in the Insurance industry
Industry Median: 0.245 vs FRA:PRU: 0.27

Prudential Debt-to-Equity Historical Data

The historical data trend for Prudential's Debt-to-Equity can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Prudential Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Debt-to-Equity

0.42

0.44

0.42

0.30

0.27

Prudential Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Debt-to-Equity																0.42	0.32	0.30	0.28	0.27

Competitive Comparison

For the Insurance - Life subindustry, Prudential's Debt-to-Equity, along with its competitors' market caps and Debt-to-Equity data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Prudential Debt-to-Equity Distribution

For the Insurance industry and Financial Services sector, Prudential's Debt-to-Equity distribution charts can be found below:

* The bar in red indicates where Prudential's Debt-to-Equity falls into.

Prudential Debt-to-Equity Calculation

Debt to Equity measures the financial leverage a company has.

Prudential's Debt to Equity Ratio for the fiscal year that ended in Dec. 2023 is calculated as

Debt to Equity	=	Total Debt			/	Total Stockholders Equity
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	Total Stockholders Equity
	=	(640.983	+	3828.475)	/	16343.691
	=	0.27

Prudential's Debt to Equity Ratio for the quarter that ended in Dec. 2023 is calculated as

Debt to Equity	=	Total Debt			/	Total Stockholders Equity
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	Total Stockholders Equity
	=	(640.983	+	3828.475)	/	16343.691
	=	0.27

Prudential (FRA:PRU) Debt-to-Equity Explanation

In the calculation of Debt to Equity, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by Total Stockholders Equity. In some calculations, Total Liabilities is used to for calculation.

Be Aware

Because a company can increase its ROE % by having more financial leverage, it is important to watch the leverage ratio when investing in high ROE % companies.

Prudential Debt-to-Equity Related Terms

Thank you for viewing the detailed overview of Prudential's Debt-to-Equity provided by GuruFocus.com. Please click on the following links to see related term pages.

Prudential (FRA:PRU) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Insurance » Prudential PLC (FRA:PRU) » Definitions » Debt-to-Equity

Comparable Companies

Traded in Other Exchanges

PUKPF:USA PUK:USA K6S:Singapore 02378:Hong Kong PRUl:UK PRU:UK PRU:Germany P1UK34:Brazil

Address

1 Angel Court, London, GBR, EC2R 7AG

Website

https://www.prudentialplc.com

Originally established as Prudential Mutual Assurance, Investment, and Loan Association in 1848, Prudential plc has moved on a lot since then. Set up to sell life insurance and loans to the middle and then the industrializing and urbanizing working classes, the company subsequently diversified into Europe and then North America with the purchase of Jackson National Life in around 1985. During its time as owner of Jackson, Prudential focused on building out a simple chassis-style product portfolio where customers could choose a variety of add-ons. The company also became renowned for its focus on building requisite internal capabilities to support its strong product offerings, including compelling technology and a large and well-trained distribution force.