ü Pembina Pipeline Corp. (PBA)
Company Introduction
TC Energy Corporation (TRP)
TC Energy is a Canadian energy company that provides natural gas and crude oil pipelines, power generation, and energy storage facilities. TC Energy's network of pipelines spans North America and Mexico, and its power generation facilities are located in Canada, the United States, and Mexico. TC Energy is one of the largest energy companies in North America, and it is a major player in the transportation and storage of natural gas and crude oil.
Pembina Pipeline Corporation (PBA)
Pembina Pipeline is a Canadian energy company that provides midstream energy services, including the transportation, storage, and processing of natural gas, crude oil, and other liquids. Pembina Pipeline's network of pipelines spans Western Canada and the Midwestern United States, and its processing facilities are located in Western Canada. Pembina Pipeline is one of the largest midstream energy companies in North America.
Business Comparison
Both TC Energy and Pembina Pipeline are midstream energy companies, but they have different business models. TC Energy is a more diversified company, with operations in natural gas pipelines, crude oil pipelines, power generation, and energy storage. Pembina Pipeline is more focused on midstream energy services, such as the transportation, storage, and processing of natural gas, crude oil, and other liquids.
Ratio Analysis
The following table shows the Current Ratio and Debt Ratio for TC Energy and Pembina Pipeline for the past three years:
| Company | Year | Current Ratio | Debt Ratio |
|---|---|---|---|
| TC Energy | 2022 | 0.94 | 0.49 |
| TC Energy | 2021 | 0.93 | 0.50 |
| TC Energy | 2020 | 0.96 | 0.51 |
| Pembina Pipeline | 2022 | 0.89 | 0.53 |
| Pembina Pipeline | 2021 | 0.91 | 0.55 |
| Pembina Pipeline | 2020 | 0.94 | 0.56 |
Current Ratio: The current ratio is a measure of a company's ability to meet its short-term obligations. It is calculated by dividing current assets by current liabilities. A higher current ratio indicates that a company has more liquidity and is better able to meet its short-term obligations.
Debt Ratio: The debt ratio is a measure of a company's financial leverage. It is calculated by dividing total debt by total equity. A higher debt ratio indicates that a company is more leveraged and is more vulnerable to financial distress.
Analysis:
The current ratio for both TC Energy and Pembina Pipeline has remained relatively stable over the past three years. This suggests that both companies have adequate liquidity to meet their short-term obligations.
The debt ratio for both TC Energy and Pembina Pipeline has also remained relatively stable over the past three years. This suggests that both companies are moderately leveraged.
Overall, the ratio analysis suggests that both TC Energy and Pembina Pipeline are financially sound companies. However, TC Energy is more diversified and has a slightly stronger current ratio than Pembina Pipeline.