American Electric Power Co Inc (AEP)

Debt-to-capital ratio

		Dec 31, 2024	Sep 30, 2024	Mar 31, 2024	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
Long-term debt	US$ in thousands	39,307,800	39,147,700	38,637,300	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
Total stockholders’ equity	US$ in thousands	26,943,800	26,617,400	25,803,300	25,246,700	25,309,700	23,901,400	23,738,200	23,893,400	24,278,200	24,056,000	23,791,300	22,433,200	22,278,100	21,378,700	20,972,800	20,550,900	20,365,900	20,007,400	19,728,400	19,632,200
Debt-to-capital ratio		0.59	0.60	0.60	0.60	0.59	0.61	0.60	0.59	0.58	0.58	0.56	0.58	0.59	0.59	0.59	0.59	0.58	0.57	0.57	0.56

December 31, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $39,307,800K ÷ ($39,307,800K + $26,943,800K)
= 0.59

The debt-to-capital ratio of American Electric Power Co Inc has shown a gradual increase over the years, starting at 0.56 as of December 31, 2019, and reaching 0.59 by December 31, 2024. This indicates that the company's reliance on debt as a source of financing relative to its total capital has been increasing.

The ratio peaked at 0.61 on June 30, 2023, but generally fluctuated within a narrow range around the 0.59 level during the later years. This stability suggests that the company has been managing its debt levels in a consistent manner.

A higher debt-to-capital ratio may indicate a higher risk level for investors and creditors, as it implies a larger proportion of debt in the company's capital structure. However, it could also signify that the company is leveraging debt effectively to fund growth opportunities or operational needs.

Overall, a continued monitoring of the debt-to-capital ratio and its trend can provide valuable insights into American Electric Power Co Inc's financial leverage and risk management practices.