The company's capital structure is heavily skewed toward debt, evidenced by a debt-to-equity ratio consistently above 1.50 and total debt reaching $43.0B as of 2021Q3.
| Metric | TTM | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 |
|---|
| Total Current Assets | 6.87B | 5.9B | 3.76B | 3.74B | 6B | 4.58B | 5.56B | 5.53B | 3.84B | 3.78B | 4.63B | 3.82B | 2.92B | 3.18B | 2.21B |
| Cash & Short-Term Investments | 2.25B | 1.08B | 366.82M | 948.16M | 1.23B | 1.32B | 1.14B | 1.21B | 799.44M | 972.26M | 756.81M | 933.85M | 1.06B | 510.66M | 344.59M |
| Cash Only | 2.25B | 1.08B | 366.82M | 948.16M | 954.48M | 1.01B | 783.08M | 842.35M | 539.32M | 617.73M | 756.81M | 933.85M | 1.06B | 510.66M | 344.59M |
| Short-Term Investments | 0 | 0 | 0 | 264.98M | 280.38M | 318.19M | 353.12M | 371.76M | 260.12M | 354.53M | 0 | 0 | 0 | 0 | 0 |
| Accounts Receivable | 2.34B | 1.99B | 1.97B | 2.01B | 1.56B | 2.79B | 3.64B | 3.7B | 2.12B | 1.83B | 2.66B | 1.73B | 1.04B | 1.98B | 1.27B |
| Days Sales Outstanding | 80.89 | 72.33 | 74.66 | 68.2 | 60.01 | 125.21 | 150.1 | 162.3 | 96.55 | 86.28 | 119.42 | 73.81 | 54.21 | 80.67 | 71.79 |
| Inventory | 585.63M | 348.56M | 315.57M | 301.69M | 274.41M | 232.53M | 252.1M | 236.24M | 224.97M | 243.56M | 427.72M | 487.43M | 396.11M | 503.57M | 336.86M |
| Days Inventory Outstanding | 37.39 | 24.47 | 21.24 | 16.54 | 16.97 | 16.62 | 16.6 | 16.73 | 16.35 | 19.35 | 34.72 | 39.32 | 30.98 | 43.1 | 41.23 |
| Other Current Assets | 1.7B | 2.44B | 1.07B | 385.49M | 2.84B | 234.68M | 529.25M | 383.06M | 695.99M | 729.68M | 781.97M | 668.67M | 423.65M | 190.49M | 255.22M |
| Total Non-Current Assets | 75.51B | 70.66B | 68.67B | 64.98B | 59.57B | 43.6B | 47.83B | 47.76B | 45.7B | 43.43B | 44.49B | 38.79B | 29.01B | 28.4B | 20.47B |
| Property, Plant & Equipment | 54.61B | 50.5B | 48.69B | 45.71B | 40.62B | 32.26B | 36.07B | 35.39B | 33.86B | 31.89B | 36.48B | 31.36B | 23.64B | 23.76B | 18.46B |
| Fixed Asset Turnover | 0.19x | 0.20x | 0.20x | 0.24x | 0.23x | 0.25x | 0.25x | 0.23x | 0.24x | 0.24x | 0.22x | 0.27x | 0.30x | 0.38x | 0.35x |
| Goodwill | 9.93B | 9.94B | 10.38B | 10.44B | 10.41B | 3.46B | 3.48B | 3.48B | 3.47B | 3.47B | 3.59B | 3.59B | 3.56B | 2.67B | 241.47M |
| Intangible Assets | 0 | 1.32B | 769.51M | 475.68M | 1.56B | 1.46B | 1.35B | 842.35M | 377.62M | 420.33M | 542.44M | 1.01B | 0 | 758.9M | 719.26M |
| Long-Term Investments | 33.58B | 7.33B | 7.1B | 6.6B | 5.46B | 4.96B | 5.06B | 5.7B | 5.77B | 5.4B | 697.43M | 725.9M | 336.98M | 413.39M | 419.35M |
| Other Non-Current Assets | 2.2B | 1.54B | 1.49B | 1.5B | 1.29B | 1.44B | 1.73B | 2.14B | 2.12B | 2.13B | 2.32B | 2.1B | 1.47B | 793.35M | 622.15M |
| Total Assets | 82.39B | 76.56B | 72.43B | 68.72B | 65.58B | 48.18B | 53.39B | 53.3B | 49.55B | 47.2B | 49.11B | 42.61B | 31.93B | 31.58B | 22.67B |
| Asset Turnover | 0.13x | 0.13x | 0.13x | 0.16x | 0.14x | 0.17x | 0.17x | 0.16x | 0.16x | 0.16x | 0.17x | 0.20x | 0.22x | 0.28x | 0.29x |
| Asset Growth % | 23.73% | 5.71% | 5.4% | 4.79% | 36.1% | -9.75% | 0.18% | 7.56% | 4.96% | -3.88% | 15.26% | 33.46% | 1.11% | 39.26% | - |
| Total Current Liabilities | 13.38B | 9.95B | 9.48B | 7.88B | 7.47B | 5.48B | 7.3B | 6.38B | 5.9B | 5.4B | 5.7B | 4.72B | 3.99B | 2.71B | 2.58B |
| Accounts Payable | 3.66B | 2.56B | 2.36B | 2.27B | 1.82B | 1.08B | 1.4B | 815.06M | 926.99M | 683.53M | 2.26B | 2.09B | 1.52B | 1.79B | 1.3B |
| Days Payables Outstanding | 236.91 | 179.41 | 158.85 | 124.6 | 112.67 | 77.48 | 92.33 | 57.72 | 67.37 | 54.32 | 183.07 | 168.57 | 118.84 | 153.41 | 158.83 |
| Short-Term Debt | 8.31B | 5.45B | 4.56B | 3.69B | 3.71B | 2.93B | 4.43B | 4B | 3.18B | 2.75B | 3.07B | 2.27B | 2.18B | 649.48M | 1.05B |
| Deferred Revenue (Current) | 283.78M | 0 | 8.05M | 13.57M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Current Liabilities | 1.35B | 1.95B | 2.55B | 1.9B | 1.94B | 1.46B | 1.46B | 1.54B | 1.79B | 1.97B | 369.35M | 362.47M | 290.81M | 263.44M | 226.86M |
| Current Ratio | 0.51x | 0.59x | 0.40x | 0.47x | 0.80x | 0.84x | 0.76x | 0.87x | 0.65x | 0.70x | 0.81x | 0.81x | 0.73x | 1.18x | 0.86x |
| Quick Ratio | 0.47x | 0.56x | 0.36x | 0.44x | 0.77x | 0.79x | 0.73x | 0.83x | 0.61x | 0.65x | 0.74x | 0.71x | 0.63x | 0.99x | 0.73x |
| Cash Conversion Cycle | -118.63 | -82.61 | -62.96 | -39.86 | -35.69 | 64.35 | 74.37 | 121.31 | 45.53 | 51.32 | -28.93 | -55.45 | -33.66 | -29.64 | -45.81 |
| Total Non-Current Liabilities | 43.37B | 41.63B | 40.26B | 39.37B | 39.68B | 28.09B | 26.51B | 26.73B | 24.22B | 23.13B | 26.8B | 22.96B | 16.52B | 18.07B | 12.9B |
| Long-Term Debt | 34.72B | 33.08B | 32.23B | 31.03B | 31.5B | 22.65B | 20.82B | 21.6B | 19.1B | 18.4B | 21.65B | 19.12B | 14.14B | 15.74B | 11.26B |
| Capital Lease Obligations | 0 | 367.07M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 172.85M | 0 | 0 | 0 | 0 | 0 |
| Deferred Tax Liabilities | 16.76B | 4.4B | 4.41B | 4.31B | 5.71B | 3.7B | 4.55B | 4.3B | 3.97B | 3.53B | 4.13B | 2.76B | 990.68M | 1.21B | 752.77M |
| Other Non-Current Liabilities | 4.22B | 3.61B | 3.53B | 4.03B | 2.46B | 1.74B | 1.14B | 832.94M | 1.15B | 932.97M | 917.83M | 955.79M | 0 | 1.03B | 845.58M |
| Total Liabilities | 56.76B | 51.58B | 49.73B | 47.26B | 47.15B | 33.57B | 33.81B | 33.12B | 30.12B | 28.54B | 32.49B | 27.67B | 20.51B | 20.77B | 15.48B |
| Total Debt | 43.03B | 38.89B | 36.79B | 34.73B | 35.21B | 25.58B | 25.25B | 25.61B | 22.28B | 21.32B | 24.73B | 21.39B | 16.32B | 16.39B | 12.32B |
| Net Debt | 40.78B | 37.81B | 36.42B | 33.78B | 34.25B | 24.57B | 24.47B | 24.77B | 21.74B | 20.71B | 23.97B | 20.45B | 15.26B | 15.88B | 11.97B |
| Debt / Equity | 1.68x | 1.56x | 1.62x | 1.62x | 2.01x | 1.75x | 1.29x | 1.27x | 1.15x | 1.14x | 1.49x | 1.43x | 1.43x | 1.52x | 1.71x |
| Debt / EBITDA | 6.83x | 6.31x | 6.66x | 6.55x | 7.61x | 6.51x | 5.89x | 6.18x | 5.67x | 5.32x | 6.07x | 5.48x | 4.98x | 4.15x | 4.14x |
| Net Debt / EBITDA | 6.47x | 6.14x | 6.59x | 6.37x | 7.41x | 6.26x | 5.71x | 5.98x | 5.53x | 5.17x | 5.88x | 5.25x | 4.66x | 4.02x | 4.03x |
| Interest Coverage | 1.46x | 2.70x | 2.44x | 2.23x | 1.21x | 0.22x | 3.25x | 2.78x | 2.62x | 2.64x | 3.31x | 2.74x | 3.14x | 2.73x | 2.74x |
| Total Equity | 25.63B | 24.98B | 22.69B | 21.46B | 17.55B | 14.61B | 19.58B | 20.18B | 19.42B | 18.67B | 16.62B | 14.93B | 11.42B | 10.8B | 7.2B |
| Equity Growth % | 14.29% | 10.1% | 5.73% | 22.29% | 20.11% | -25.37% | -2.96% | 3.88% | 4.05% | 12.31% | 11.29% | 30.83% | 5.66% | 50.16% | - |
| Book Value per Share | 26.18 | 26.83 | 24.72 | 24.36 | - | 18.76 | 25.26 | 26.92 | 26.31 | 25.50 | - | - | 19.97 | - | - |
| Total Shareholders' Equity | 25.53B | 23.72B | 21.48B | 19.98B | 16.26B | 13.38B | 18.21B | 18.84B | 18.38B | 17.61B | 15.85B | 14.19B | 10.45B | 10.19B | 6.88B |
| Common Stock | 20.98B | 18.81B | 16.97B | 16.89B | 15.65B | 11.75B | 14.09B | 14.31B | 14.37B | 13.79B | 11.71B | 10.16B | 7.5B | 6.64B | 4.05B |
| Retained Earnings | 2.78B | 3.05B | 2.03B | 1.3B | 1.18B | 2.15B | 4.84B | 4.82B | 4.68B | 4.48B | 4.29B | 3.94B | 3.1B | 3.24B | 2.34B |
| Treasury Stock | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Accumulated OCI | -1.56B | -1.2B | -443.7M | -1.38B | -715.86M | -675.98M | -1.07B | -879.06M | 0 | -2.05B | -882.6M | -602.85M | -382.34M | -377.93M | -77.34M |
| Minority Interest | 97.74M | 1.26B | 1.21B | 1.48B | 1.29B | 1.24B | 1.37B | 1.33B | 1.04B | 1.06B | 772.91M | 748.8M | 967.19M | 618.07M | 314.51M |
High leverage and capex
Based on reported quarterly figures, TCPA has grown total assets from $74.4B in 2019Q1 to $82.4B by 2021Q3, yet this expansion has been primarily funded through debt accumulation rather than retained earnings, signaling a potential long-term weakening of the balance sheet's structural integrity.
The consistent growth in total assets suggests an aggressive capital deployment strategy, yet the failure to commensurately grow equity indicates that the company is increasingly reliant on external financing. Investors should monitor whether this asset-heavy trajectory will eventually yield sufficient returns to justify the rising debt burden.
As reported in financial statements, TCPA maintains a debt-to-equity ratio consistently above 1.50, with total debt climbing to $43.0B by 2021Q3, which suggests that the company's capital structure is heavily skewed toward debt to support its massive infrastructure footprint.
This persistent leverage level implies that the company is operating with limited financial flexibility, leaving it vulnerable to interest rate volatility or shifts in credit market conditions. The reliance on debt to fund ongoing operations and expansion warrants caution regarding the durability of cash flows in a higher-rate environment.
According to recent SEC filings, TCPA's current ratio has frequently dipped below 0.60, reaching a low of 0.37 in 2019Q1, which indicates a structural reliance on revolving credit facilities or capital market access to meet short-term obligations rather than internal cash generation.
The consistently low current ratio suggests that the company operates with minimal working capital, which may force management to prioritize debt service over other capital allocation priorities during periods of operational stress. This liquidity profile appears inadequate for a firm of this scale and capital intensity.
Based on reported figures, net PPE has grown to $54.6B by 2021Q3, representing the vast majority of the asset base, which highlights the company's extreme sensitivity to project execution risks and the potential for future goodwill or asset impairment charges.
The concentration of value in long-lived, illiquid infrastructure assets suggests that the company's valuation is highly dependent on the long-term regulatory and economic viability of its pipeline network. Any shift in energy policy or demand could lead to significant write-downs given the scale of these capital investments.
Quick answers to the most common questions about buying TCPA stock.
As of 2019, TransCanada PipeLines Limited 6 (TCPA) had total assets of $76.56B including $5.90B in current assets.
TransCanada PipeLines Limited 6 (TCPA) carries total debt of $38.89B, offset by $1.08B in cash and short-term investments. Comparing total debt to cash helps evaluate the company's debt burden and net leverage.
TransCanada PipeLines Limited 6 (TCPA) has total shareholders' equity (book value) of $23.72B ($26.83 book value per share). Book value represents the net worth of the company belonging to common stock holders.
TransCanada PipeLines Limited 6 (TCPA) reported a current ratio of 0.59x. A current ratio above 1.0x indicates that the company has more current assets than current liabilities, suggesting sufficient short-term liquidity.