American Water Works (AWK)
Debt-to-equity 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-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 1.83 |
December 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $10,332,000K
= 0.00
The debt-to-equity ratio for American Water Works has shown a significant decline over the years, from 1.83 as of December 31, 2020, to 0.00 in subsequent years (December 31, 2021-2024). A debt-to-equity ratio of 0.00 indicates that the company has either no debt or very minimal debt compared to its equity. This suggests that American Water Works may be relying more on equity financing rather than debt financing to support its operations and growth. The decreasing trend in the debt-to-equity ratio could indicate improved financial stability and reduced financial risk for the company, as it indicates a lower reliance on external borrowing for its capital structure.
Peer comparison
Dec 31, 2024