TransAlta (TSX:TA) Debt-to-Equity : 2.30 (As of Sep. 2024)

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What is TransAlta Debt-to-Equity?

TransAlta's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2024 was C$1,287 Mil. TransAlta's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2024 was C$2,879 Mil. TransAlta's Total Stockholders Equity for the quarter that ended in Sep. 2024 was C$1,814 Mil. TransAlta's debt to equity for the quarter that ended in Sep. 2024 was 2.30.

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

TSX:TA' s Debt-to-Equity Range Over the Past 10 Years
Min: 0.96 Med: 1.27 Max: 3.61
Current: 2.3

During the past 13 years, the highest Debt-to-Equity Ratio of TransAlta was 3.61. The lowest was 0.96. And the median was 1.27.

TSX:TA's Debt-to-Equity is ranked worse than
82.62% of 397 companies
in the Utilities - Independent Power Producers industry
Industry Median: 0.79 vs TSX:TA: 2.30

TransAlta Debt-to-Equity Historical Data

The historical data trend for TransAlta'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.

TransAlta Debt-to-Equity Chart

TransAlta Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Debt-to-Equity

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1.20

1.57

2.28

3.61

2.48

TransAlta Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
Debt-to-Equity	Get a 7-Day Free Trial															2.27	2.48	2.33	2.34	2.30

Competitive Comparison of TransAlta's Debt-to-Equity

For the Utilities - Independent Power Producers subindustry, TransAlta'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.

TransAlta's Debt-to-Equity Distribution in the Utilities - Independent Power Producers Industry

For the Utilities - Independent Power Producers industry and Utilities sector, TransAlta's Debt-to-Equity distribution charts can be found below:

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

TransAlta Debt-to-Equity Calculation

Debt to Equity measures the financial leverage a company has.

TransAlta'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
	=	(535	+	3278)	/	1537
	=	2.48

TransAlta's Debt to Equity Ratio for the quarter that ended in Sep. 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
	=	(1287	+	2879)	/	1814
	=	2.30

TransAlta (TSX:TA) 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.

TransAlta Debt-to-Equity Related Terms

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

TransAlta Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Independent Power Producers » TransAlta Corp (TSX:TA) » Definitions » Debt-to-Equity

Comparable Companies

Traded in Other Exchanges

TAC:USA TZ1:Germany TZ1:Germany TA.PR.J.PFD:Canada TA.PR.H.PFD:Canada TA.PR.F.PFD:Canada TA.PR.E.PFD:Canada TA.PR.D.PFD:Canada

Address

1100 1st Street SE, TransAlta Place, Suite 1400, Calgary, AB, CAN, T2G 1B1

Website

https://www.transalta.com

TransAlta Corp is an independent power producer based in Alberta, Canada. The company operates a diverse and growing fleet of electrical power generation assets in Canada, the United States, and Australia. The company has six reportable segments namely, hydro, wind & solar, Energy Marketing, gas, energy transition segment and Corporate Segment. The company generates the majority of its revenue from the gas segment.

Executives

Jane Nyla Fedoretz	Senior Officer
John Harry Kousinioris	Director, Senior Officer
Kerry Lynn O'reilly	Senior Officer
Blain Mitchell Van Melle	Senior Officer
Aron John Willis	Senior Officer
Todd John Stack	Senior Officer
Candace Joan Macgibbon	Director
Brent Vincent Ward	Senior Officer
Michael Jon Novelli	Senior Officer
Scott Thomas Jeffers	Senior Officer
Brett Gellner	Director or Senior Officer of Insider or Subsidiary (other than in 4,5,6)
Allen R. Hagerman	Director or Senior Officer of Insider or Subsidiary (other than in 4,5,6)
Dawn Lorraine Farrell	Director, Senior Officer
Kathryn Elizabeth Higgins	Senior Officer
Brookfield Corporation	10% Security Holder