American Electric Power Co Inc (AEP)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 103,078,000 | 96,684,000 | 93,403,300 | 87,668,700 | 80,757,200 |
| Total stockholders’ equity | US$ in thousands | 26,943,800 | 25,246,700 | 23,893,400 | 22,433,200 | 20,550,900 |
| Financial leverage ratio | 3.83 | 3.83 | 3.91 | 3.91 | 3.93 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $103,078,000K ÷ $26,943,800K
= 3.83
The financial leverage ratio of American Electric Power Co Inc has shown minimal fluctuations over the years based on the provided data. It was 3.93 as of December 31, 2020, decreasing slightly to 3.91 by the end of both 2021 and 2022. Subsequently, the ratio dropped to 3.83 by December 31, 2023, and remained stable at this level till the end of 2024. This suggests that the company's reliance on debt to finance its operations has been relatively consistent with a moderate decrease in leverage seen towards the latter years. Maintaining a financial leverage ratio within a certain range provides insight into the company's debt management and risk tolerance strategies.
Peer comparison
Dec 31, 2024