American Electric Power Company Inc (AEP)

Financial leverage 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
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
Total stockholders’ equity	US$ in thousands	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	19,716,400	19,259,600	19,196,300
Financial leverage ratio		3.83	3.76	4.02	3.98	3.91	3.76	3.78	3.78	3.91	3.88	3.95	3.96	3.93	3.86	3.89	3.94	3.87	3.75	3.77	3.68

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $96,684,000K ÷ $25,246,700K
= 3.83

The financial leverage ratio of American Electric Power Company Inc. has exhibited fluctuations over the last eight quarters. In Q2 2023, the ratio increased to 4.01, reflecting a higher level of leverage compared to the previous quarter. However, this was followed by a slight decrease in Q3 2023 to 3.75, which was consistent with the ratio seen in Q3 2022.

Overall, the company's financial leverage ratio has remained relatively stable around 3.75 to 3.97 over the past two years, indicating a moderate level of debt utilization to finance its operations and investments. While the increase in Q2 2023 may raise concerns about increased leverage, the subsequent decrease in Q3 2023 suggests a possible effort to manage and control debt levels.

Further analysis of accompanying financial metrics and external factors would be necessary to fully evaluate the implications of these fluctuations in the financial leverage ratio on American Electric Power Company Inc.'s financial health and performance.