American Water Works (AWK)
Debt-to-capital 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | 11,807,000 | — | — | — | 9,770,000 | — | — | — |
| Total stockholders’ equity | US$ in thousands | 9,797,000 | 9,897,000 | 9,701,000 | 9,547,000 | 7,693,000 | 7,758,000 | 7,570,000 | 7,460,000 | 7,298,000 | 6,866,000 | 6,690,000 | 6,583,000 | 6,454,000 | 6,512,000 | 6,338,000 | 6,243,000 | 6,121,000 | 6,190,000 | 6,027,000 | 5,932,000 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.65 | 0.00 | 0.00 | 0.00 | 0.61 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $9,797,000K)
= 0.00
The debt-to-capital ratio of American Water Works Co. Inc. has shown some fluctuations over the past eight quarters. The ratio has ranged between 0.54 and 0.62 during this period, with the highest point recorded in Q4 2022 and the lowest in Q1 2023.
Overall, the trend indicates that the company has maintained a relatively stable level of debt in relation to its capital structure, with the ratio typically hovering around the mid-0.50s to low-0.60s range. This suggests that American Water Works Co. Inc. relies moderately on debt to finance its operations and investments while keeping a significant portion of its capital funded by equity.
It would be prudent to continue monitoring the debt-to-capital ratio in future quarters to assess any significant deviations from this trend, as a substantial increase in the ratio could indicate a higher level of financial risk for the company.
Peer comparison
Dec 31, 2023