PG&E (PCG) Interest Coverage

: 1.72 (As of Dec. 2023)

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Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. PG&E's Operating Income for the three months ended in Dec. 2023 was $1,593 Mil. PG&E's Interest Expense for the three months ended in Dec. 2023 was $-926 Mil. PG&E's interest coverage for the quarter that ended in Dec. 2023 was 1.72. The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. PG&E Corp interest coverage is 1.4, which is low.

The historical rank and industry rank for PG&E's Interest Coverage or its related term are showing as below:

PCG' s Interest Coverage Range Over the Past 10 Years
Min: 1.34 Med: 1.77 Max: 3.34
Current: 1.4

PCG's Interest Coverage is ranked worse than
86.88% of 442 companies
in the Utilities - Regulated industry
Industry Median: 3.715 vs PCG: 1.40

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

PG&E Interest Coverage Historical Data

The historical data trend for PG&E's Interest Coverage 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.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

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PG&E Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

1.44

1.59

1.34

1.40

PG&E Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage																1.39	1.50	1.24	1.05	1.72

Competitive Comparison

For the Utilities - Regulated Electric subindustry, PG&E's Interest Coverage, along with its competitors' market caps and Interest Coverage 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.

PG&E Interest Coverage Distribution

For the Utilities - Regulated industry and Utilities sector, PG&E's Interest Coverage distribution charts can be found below:

* The bar in red indicates where PG&E's Interest Coverage falls into.

PG&E Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

PG&E's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, PG&E's Interest Expense was $-2,850 Mil. Its Operating Income was $4,002 Mil. And its Long-Term Debt & Capital Lease Obligation was $52,047 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	4002	/	-2850
	=	1.40

PG&E's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, PG&E's Interest Expense was $-926 Mil. Its Operating Income was $1,593 Mil. And its Long-Term Debt & Capital Lease Obligation was $52,047 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	1593	/	-926
	=	1.72

The higher the ratio, the stronger the company's Financial Strength is.

PG&E (NYSE:PCG) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

PG&E Interest Coverage Related Terms

Thank you for viewing the detailed overview of PG&E's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

PG&E (PCG) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Regulated » PG&E Corp (NYSE:PCG) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

PCG:Mexico 1PCG:Italy PCG:Germany PCG:Germany PCG:Austria

Address

300 Lakeside Drive, Oakland, CA, USA, 94612

Website

https://www.pgecorp.com

PG&E is a holding company whose main subsidiary is Pacific Gas and Electric, a regulated utility operating in Central and Northern California that serves 5.3 million electricity customers and 4.6 million gas customers in 47 of the state's 58 counties. PG&E operated under bankruptcy court supervision between January 2019 and June 2020. In 2004, PG&E sold its unregulated assets as part of an earlier postbankruptcy reorganization.

Executives

Cheryl F. Campbell	director	C/O 77 BEALE ST., P.O. BOX 770000, SAN FRANCISCO CA 94177
Carolyn Jeanne Burke	officer: EVP Finance	C/O EXCELERATE ENERGY, INC., 2445 TECHNOLOGY FOREST BLVD., LEVEL 6, THE WOODLANDS TX 77381
Patricia K Poppe	director, officer: Chief Executive Officer	77 BEALE STREET, POB 770000, SAN FRANCISCO CA 94177
Edward G Cannizzaro	director	5130 HACIENDA DRIVE, DUBLIN CA 94568
Stephanie N Williams	officer: VP and Controller	77 BEALE STREET, PO BOX 77000, SAN FRANCISCO CA 94177
Pg&e Fire Victim Trust	10 percent owner	TWO EMBARCADERO CENTER, SUITE 1500, SAN FRANCISCO CA 94111
William Lloyd Smith	director	46429 LANDING PARKWAY, FREMONT CA 94538
Marlene Santos	other: EVP, CCO at PG&E Company	77 BEALE STREET, P.O. BOX 770000, SAN FRANCISCO CA 94117
Carlos M Hernandez	director
Adam L Wright	other: EVP, Ops & COO at PG&E Company	77 BEALE STREET, P.O. BOX 770000, SAN FRANCISCO CA 94177
Julius Cox	officer: EVP/Ppl, Shrd Svcs & Spply Chn	77 BEALE STREET, POB 770000, SAN FRANCISCO CA 94177
Sumeet Singh	officer: EVP/CRO & Chf Safety Ofc	77 BEALE STREET, PO BOX 770000, SAN FRANCISCO CA 94177
Ajay Waghray	officer: SVP & Chf Information Ofc	C/O ASSURANT, INC., 28 LIBERTY STREET, 41 FL., NEW YORK NY 1
Carla J Peterman	officer: EVP/Corp. Affairs & CSO	77 BEALE STREET, P.O. BOX 77000, SAN FRANCISCO CA 94177
Christopher A Foster	officer: EVP & Chief Financial Officer	77 BEALE ST., P.O. BOX 770000, SAN FRANCISCO CA 94177