vvincii we show the working

← PG&E

The business behind the dividend

MeasurePCGMedianFormula
Return on equity8.3%11.7%Net income ÷ shareholders’ equity
Return on capital employed5.2%10.1%Operating income ÷ (equity + total debt)
Owner earningsNet income + depreciation & amortisation − capital expenditure
Free cash flow$-3.07bn$746.10mOperating cash flow − capital expenditure
Operating margin19.0%15.0%Operating income ÷ revenue
Net margin10.8%10.2%Net income ÷ revenue
Debt to equity1.79x0.79xTotal debt ÷ shareholders’ equity
Interest cover1.57x4.43xOperating income ÷ interest expense
Current ratio0.97x1.25xCurrent assets ÷ current liabilities
Long-term debt to working capitalLong-term debt ÷ (current assets − current liabilities)
Cash conversion3.22x1.78xOperating cash flow ÷ net income

Not computed here: Long-term debt to working capital, Owner earnings — why a blank is not a zero.

Ten years of it

The same measures, for every year the filings support. One year is a fact; a row is a business.

Measure2025202420232022202120202019201820172016Median
Return on equity8.3%8.3%9.0%7.9%-0.4%-6.2%-148.8%-54.0%8.6%7.8%7.8%
Return on capital employed5.2%5.2%3.5%2.5%3.0%3.0%-196.5%-18.2%7.8%6.0%3.0%
Operating margin19.0%18.3%10.9%8.5%9.1%9.5%-58.9%-57.9%17.0%11.8%9.5%
Net margin10.8%10.3%9.2%8.4%-0.4%-7.1%-44.6%-40.8%9.7%8.0%8.0%
Debt to equity1.79x1.85x2.09x2.19x2.04x1.78x0.00x3.21x0.95x0.94x1.79x
Current ratio0.97x1.05x0.83x0.81x0.64x0.71x1.33x0.22x0.88x0.81x0.81x
Cash conversion3.22x3.20x2.10x2.05x3.60x3.13x3.13x

How it compares in utilities

Among the 57 utilities companies here measured on GAAP earnings, PG&E pays out less than 54 of them. The median for that group is 61.5%, against this company’s 10.7%.

Closest on GAAP earnings

Same sector and same denominator, so the figures are comparable. All 58 in utilities →