3. What is PG\&E's total asset turnover ratio for 2017 ? As a fixed income investor in this firm, would you prefer the number be higher or lower? Why? 4. What is PG\&E's interest coverage ratio for 2016? Please use EBITDA for your calculation. As a fixed income investor in this firm, would you prefer the number be higher or lower? Why? 5. What is PG\&E's quick ratio for 2015 ? As a fixed income investor in this firm, would you prefer the number be higher or lower? Why? 6. What was PG\&E's cash conversion cycle in 2015 and 2017? What is the cause(s) of this change? As a fixed income investor, would you prefer the trend be positive or negative and why? PG\&E Corporation CONSOLIDATED STATEMENTS OF INCOME (in millions, except per share amounts) \begin{tabular}{|ll|l|l|l|l|} \hline Year ended December 31, & & NCOME (in millions, except per share amounts) \\ \hline & 2014 & 2015 & 2016 & 2017 & 2018 \\ \hline \end{tabular} \begin{tabular}{|lc|c|c|c|c|c|} \hline & \multicolumn{2}{c}{ Operating Revenues } & \\ \hline Electric & & 13,658 & 13,657 & 13,864 & 13,124 & 12,713 \\ \hline Natural gas & & 3,432 & 3,176 & 3,802 & 4,011 & 4,046 \\ \hline Total operating revenues & & 17090 & 16833 & 17,666 & 17,135 & 16,759 \\ \hline \end{tabular} \begin{tabular}{|l|c|c|c|c|c|} \hline & \multicolumn{2}{|l|}{ Operating Expenses } \\ \hline Cost of electricity & 5615 & 5099 & 4,765 & 4,309 & 3,828 \\ \hline Cost of natural gas & 954 & 663 & 615 & 746 & 671 \\ \hline Cost of electricity and natural gas sold & 6569 & 5762 & 5380 & 5055 & 4449 \\ \hline Gross profit & 10521 & 11071 & 12286 & 12080 & 12260 \\ \hline Operating and maintenance & 5,638 & 6,951 & 7,326 & 6,321 & 7,153 \\ \hline Wildfire-related claims, net of insurance recoveries & & & 125 & & 11,771 \\ \hline Depreciation, amortization, and decommissioning & 2433 & 2612 & 2,755 & 2,854 & 3,036 \\ \hline Total operating expenses & 14640 & 15325 & 15,586 & 14,230 & 26,459 \\ \hline Operating Income (Loss) & 2450 & 1508 & 2,080 & 2,905 & 9,700 \\ \hline Other non-operating income, net & 70 & 117 & 188 & 123 & 424 \\ \hline Interest income & 9 & 9 & 23 & 31 & 76 \\ \hline Interest expense & 734 & 773 & 829 & 888 & 929 \\ \hline Income (Loss) Before Income Taxes & 1795 & 861 & 1,462 & 2,171 & 10,129 \\ \hline Income tax provision (benefit) & 345 & 27 & 55 & 511 & 3,292 \\ \hline Net Income (Loss) & 1450 & 888 & 1,407 & 1,660 & 6,837 \\ \hline Preferred stock dividends & 14 & 14 & 14 & 14 & 14 \\ \hline Net Income (Loss) Available for Common Shareholders & 1436 & 874 & 1,393 & 1,646 & 6,851 \\ \hline \end{tabular} Reference items \begin{tabular}{|l|c|c|c|c|c|} \hline EBITDA & 4883 & 4120 & 4835 & 5759 & 6664 \\ \hline EBIT & 2450 & 1508 & 2080 & 2905 & 9700 \\ \hline Common Shares Outstanding (millions) & 468 & 484 & 499 & 512 & 517 \\ \hline Net Earnings (Loss) Per Common Share & 3.07 & 1.81 & 2.79 & 3.21 & 13.25 \\ \hline \end{tabular} Drag ID Conmunstion PG\&E Corporation CONSOUDATED BALANCE SHEET
