American Electric Power Co Inc (AEP)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 103,078,000 | 100,119,000 | 97,744,600 | 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 |
| 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 |
| Financial leverage ratio | 3.83 | 3.76 | 3.79 | 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 |
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 been fluctuating over the provided periods between December 31, 2019, and December 31, 2024. The ratio ranged from 3.76 to 4.02 during this time frame.
The financial leverage ratio measures the company's use of debt to finance its operations and assets. A higher ratio indicates a greater reliance on debt financing, which could potentially lead to higher financial risk.
From the data provided, we can observe that the financial leverage ratio slightly increased from December 31, 2019 to March 31, 2020, before fluctuating over the next several quarters. It peaked at 4.02 on June 30, 2023, indicating a higher level of debt relative to equity during that period.
The ratio then decreased to 3.76 by September 30, 2023, suggesting a reduction in debt relative to equity. The financial leverage ratio continued to fluctuate until the end of the observation period on December 31, 2024, where it stood at 3.83.
Overall, the trend in the financial leverage ratio of American Electric Power Co Inc over the analyzed period indicates fluctuations in the company's capital structure, reflecting changes in its debt and equity financing mix. It is essential for stakeholders to monitor this ratio to assess the company's leverage levels and associated financial risks.
Peer comparison
Dec 31, 2024