American Electric Power Co Inc (AEP)

Debt-to-assets ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Long-term debt	US$ in thousands	39,307,800	37,652,700	34,314,600	31,300,700	28,986,400
Total assets	US$ in thousands	103,078,000	96,684,000	93,403,300	87,668,700	80,757,200
Debt-to-assets ratio		0.38	0.39	0.37	0.36	0.36

December 31, 2024 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $39,307,800K ÷ $103,078,000K
= 0.38

The debt-to-assets ratio of American Electric Power Co Inc has remained relatively stable over the past five years, ranging from 0.36 to 0.39. This indicates that the company finances a moderate proportion of its assets through debt, with approximately 36% to 39% of its total assets being funded by debt. The slight increase in the ratio from 0.36 in 2021 to 0.39 in 2023 suggests a potential increase in debt relative to assets during this period. Overall, the company's debt-to-assets ratio is within a reasonable range, indicating a balanced capital structure with a significant portion of assets financed by equity.