American Water Works (AWK)
Debt-to-assets ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | 11,807,000 |
| Total assets | US$ in thousands | 32,830,000 | 30,298,000 | 27,787,000 | 26,075,000 | 24,766,000 |
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.48 |
December 31, 2024 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $—K ÷ $32,830,000K
= 0.00
The debt-to-assets ratio for American Water Works shows a significant improvement over the years based on the provided data. As of December 31, 2020, the ratio stood at 0.48, indicating that 48% of the company's assets were financed by debt. However, in subsequent years, the ratio decreased to 0.00, suggesting that the company significantly reduced its reliance on debt to finance its assets.
A debt-to-assets ratio of 0.00 signifies that the company's assets are primarily funded by equity rather than debt, which can be seen as a positive sign of financial health and stability. This trend indicates that American Water Works has effectively managed its debt levels and may have paid down existing debts or utilized other financing sources to support its asset base.
Overall, the decreasing trend in the debt-to-assets ratio reflects a strong financial position for American Water Works, as the company has reduced its debt burden and improved its ability to fund assets through internal resources or equity financing.
Peer comparison
Dec 31, 2024