American Electric Power Company Inc (AEP)

Debt-to-equity 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-equity ratio		1.49	1.44	1.40	1.41	1.28

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $37,652,700K ÷ $25,246,700K
= 1.49

The trend of American Electric Power Company Inc.'s debt-to-equity ratio over the last five years shows a consistent increase, reaching 1.70 at the end of 2023 from 1.66 in 2022. This indicates that the company has been relying more on debt financing relative to equity financing in recent years.

The rise in the debt-to-equity ratio could suggest that the company is taking on more debt to fund its operations, investments, or acquisitions. While some level of debt is normal for companies, a continually increasing ratio may raise concerns about the company's ability to service its debt obligations in the long term.

It would be prudent for stakeholders to closely monitor American Electric Power's debt levels and assess the company's overall financial health and risk management strategies to ensure sustainable growth and profitability in the future.