Power Finance (NSE:PFC) Debt-to-Equity : 8.52 (As of Mar. 2024)

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What is Power Finance Debt-to-Equity?

Power Finance's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was ₹0 Mil. Power Finance's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was ₹8,619,611 Mil. Power Finance's Total Stockholders Equity for the quarter that ended in Mar. 2024 was ₹1,011,468 Mil. Power Finance's debt to equity for the quarter that ended in Mar. 2024 was 8.52.

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 Power Finance's Debt-to-Equity or its related term are showing as below:

NSE:PFC' s Debt-to-Equity Range Over the Past 10 Years
Min: 5.57 Med: 10 Max: 12.62
Current: 8.52

During the past 13 years, the highest Debt-to-Equity Ratio of Power Finance was 12.62. The lowest was 5.57. And the median was 10.00.

NSE:PFC's Debt-to-Equity is ranked worse than
94.92% of 433 companies
in the Credit Services industry
Industry Median: 1.16 vs NSE:PFC: 8.52

Power Finance Debt-to-Equity Historical Data

The historical data trend for Power Finance'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.

Power Finance Debt-to-Equity Chart

Power Finance Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Debt-to-Equity

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12.62

11.34

9.63

9.28

8.52

Power Finance Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Debt-to-Equity	Get a 7-Day Free Trial															9.28	N/A	8.73	8.73	8.52

Competitive Comparison of Power Finance's Debt-to-Equity

For the Credit Services subindustry, Power Finance'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.

Power Finance's Debt-to-Equity Distribution in the Credit Services Industry

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

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

Power Finance Debt-to-Equity Calculation

Debt to Equity measures the financial leverage a company has.

Power Finance's Debt to Equity Ratio for the fiscal year that ended in Mar. 2024 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
	=	(0	+	8619610.6)	/	1011467.7
	=	8.52

Power Finance's Debt to Equity Ratio for the quarter that ended in Mar. 2024 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
	=	(0	+	8619610.6)	/	1011467.7
	=	8.52

Power Finance (NSE:PFC) 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.

Power Finance Debt-to-Equity Related Terms

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Power Finance (NSE:PFC) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Credit Services » Power Finance Corp Ltd (NSE:PFC) » Definitions » Debt-to-Equity

Comparable Companies

Traded in Other Exchanges

532810:India

Address

Urjanidhi, 1, Barakhamba Lane, Connaught Place, New Delhi, IND, 110001

Website

https://www.pfcindia.com

Power Finance Corp Ltd is a financial institution operating in India and dedicated to financing of the country's power sector and its various projects. The company serves state power utilities, central power sector utilities, power departments, private power sector utilities, joint sector power utilities, power equipment manufacturers, and municipal power utilities. The company's main products include rupee term loans, short-term loans, and a buyer line of credit. Interest income is the company's main source of revenue. The company's strategy emphasizes exploring other areas for sustainable growth, including funding renewable equipment manufacturers, nuclear power projects, and backward linkages to the power sector.