American Water Works (AWK)
Debt-to-equity 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-equity 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 | 1.83 | 0.00 | 0.00 | 0.00 | 1.60 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $9,797,000K
= 0.00
The debt-to-equity ratio of American Water Works Co. Inc. has fluctuated over the past eight quarters. It stood at 1.26 in Q4 2023, showing a slight increase from the previous quarter at 1.23. Comparing to the same period a year ago, the company has managed to reduce its debt levels as the ratio was notably higher at 1.61 in Q4 2022.
Overall, the trend indicates variability in the company's capital structure and level of leverage. A debt-to-equity ratio above 1 suggests that the company is primarily financed by debt, which may indicate higher financial risk. However, the company's ability to manage this ratio over time reflects its efforts to maintain a balanced capital structure. Moreover, the recent decrease in the ratio compared to a year ago may indicate a positive trend towards more stable financial health. Further analysis of the company's debt management strategies and profitability can provide a more comprehensive understanding of its financial position.
Peer comparison
Dec 31, 2023