American Water Works (AWK)

Debt-to-assets ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	—	—	—	11,807,000	9,770,000
Total assets	US$ in thousands	30,298,000	27,787,000	26,075,000	24,766,000	22,682,000
Debt-to-assets ratio		0.00	0.00	0.00	0.48	0.43

December 31, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $—K ÷ $30,298,000K
= 0.00

The debt-to-assets ratio of American Water Works Co. Inc. has fluctuated over the past five years. As of December 31, 2023, the ratio stands at 0.41, indicating that 41% of the company's assets are financed through debt.

Comparing this to the previous years, we observe some variability in the ratio, with values ranging from 0.42 to 0.45. This suggests that the company has been actively managing its debt levels relative to its total assets.

A decreasing trend in the debt-to-assets ratio could imply that the company is progressively relying less on debt to finance its operations and investments, which could be viewed positively by investors and creditors as it signifies a potentially lower financial risk. Conversely, an increasing trend may indicate a higher reliance on debt financing, which could lead to increased financial leverage and risk.

It is essential for stakeholders to continue monitoring American Water Works Co. Inc.'s debt-to-assets ratio in conjunction with other financial metrics to assess the company's overall financial health and risk profile accurately.