American Electric Power Company Inc (AEP)

Debt-to-capital ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	37,652,700	34,314,600	31,300,700	28,986,400	25,126,800
Total stockholders’ equity	US$ in thousands	25,246,700	23,893,400	22,433,200	20,550,900	19,632,200
Debt-to-capital ratio		0.60	0.59	0.58	0.59	0.56

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $37,652,700K ÷ ($37,652,700K + $25,246,700K)
= 0.60

The debt-to-capital ratio of American Electric Power Company Inc. has shown a relatively stable trend over the past five years, ranging between 0.60 and 0.63. This ratio indicates that, on average, the company finances approximately 62% of its capital structure through debt.

The slight increase in the ratio from 0.60 in 2019 to 0.63 in 2023 suggests a slightly higher reliance on debt financing by the company. However, it is important to note that this ratio remains fairly consistent over the years, indicating a certain level of financial stability in the company's capital structure.

Overall, the debt-to-capital ratio indicates that American Electric Power Company Inc. maintains a balanced approach between debt and equity financing, with a majority of its capital structure being comprised of debt. Further analysis of other financial ratios and factors would be necessary to gain a more comprehensive understanding of the company's overall financial health and leverage capacity.