Sempra (SRE) Balance Sheet

Roughly 30 percent asset growth against about 13 percent equity growth implies that the incremental rate base is increasingly reliant on debt and other obligations. Under a regulated model, this gap may indicate that allowed returns are not yet translating into equity accretion at the pace the capital program requires. Investors should monitor whether construction work in progress converts into placed-in-service assets that earn returns sooner, as the current spread appears to be widening rather than closing.

Total liabilities of $77.2B against equity of $33.3B implies a liabilities-to-equity profile well above the reported D/E figure, indicating the ratio may be computed on a narrower debt definition. Authorized versus actual debt-to-capital comparisons, which are the relevant regulatory measures, are not included in the supplied data and therefore cannot be assessed. Until that reconciliation is available, the leverage picture should be treated as indicative rather than conclusive.

A cash position this small relative to a $118B asset base suggests that day-to-day liquidity is managed through short-term facilities rather than balance sheet reserves. The current ratio has moved from roughly 0.5 in 2025 to about 1.6 now, which may reflect reclassification or refinancing of short-term obligations rather than a structural improvement. Investors should monitor the maturity profile of short-term debt and available credit capacity, which are not disclosed in the provided data.

Sustained low ROE alongside a shrinking equity-to-assets ratio suggests the equity base is expanding more slowly than the asset base, which weakens the earnings power backing each dollar of rate base. Quarterly ROE swings appear driven by items beyond core regulated returns, so the underlying earned return remains difficult to isolate. The gap between earned and authorized returns is a central question for equity quality and warrants further investigation.