American Water Works (AWK)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 10,332,000 | 9,797,000 | 7,693,000 | 7,298,000 | 6,454,000 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.65 |
December 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $10,332,000K)
= 0.00
American Water Works' debt-to-capital ratio has shown a significant decline over the past few years, dropping from 0.65 on December 31, 2020, to 0.00 in subsequent years (2021, 2022, 2023, and 2024). This trend indicates that the company's level of debt in relation to its total capital structure has decreased considerably, implying a lower reliance on debt financing. A debt-to-capital ratio of 0.00 suggests that the company may have no debt or a very minimal amount relative to its total capital, which could be a positive indicator of financial stability and potentially lower financial risk. Further analysis would be necessary to understand the factors driving this reduction and to assess the implications for the company's overall financial health and strategy.
Peer comparison
Dec 31, 2024