American Electric Power Company Inc (AEP)

Debt-to-assets ratio

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Long-term debt	US$ in thousands	37,652,700	36,715,500	36,762,000	36,239,100	34,314,600	33,646,600	32,982,700	30,855,700	31,300,700	32,056,500	30,659,300	30,214,800	28,986,400	28,155,500	26,637,700	25,783,000	25,126,800	24,553,500	24,174,400	22,898,200
Total assets	US$ in thousands	96,684,000	95,125,600	96,002,100	94,517,900	93,403,300	91,249,400	90,861,300	89,831,400	87,668,700	86,337,100	84,358,200	82,985,100	80,757,200	78,689,300	77,804,800	77,724,000	75,892,300	73,900,700	72,550,000	70,722,000
Debt-to-assets ratio		0.39	0.39	0.38	0.38	0.37	0.37	0.36	0.34	0.36	0.37	0.36	0.36	0.36	0.36	0.34	0.33	0.33	0.33	0.33	0.32

December 31, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $37,652,700K ÷ $96,684,000K
= 0.39

The debt-to-assets ratio of American Electric Power Company Inc. has shown some fluctuations over the past eight quarters. From Q1 2022 to Q2 2023, the ratio has ranged from 0.41 to 0.46, with the highest point observed in Q2 2023. This indicates that the company's proportion of debt relative to its total assets has been relatively stable, with a slight increase in the most recent quarter.

A ratio of 0.44 in Q4 2023 suggests that 44% of the company's total assets are financed through debt. This level of leverage indicates that a significant portion of the company's assets is funded by debt capital rather than equity. While the ratio has remained within a narrow range, it is essential for investors and stakeholders to monitor any significant changes in the future, as higher debt levels can bring increased financial risk and interest payments.

Overall, the debt-to-assets ratio analysis highlights the capital structure of American Electric Power Company Inc. and provides insights into its debt management practices over the past two years.