American Water Works (AWK)

Debt-to-equity ratio

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	11,807,000	—	—	—
Total stockholders’ equity	US$ in thousands	10,332,000	10,362,000	10,152,000	10,007,000	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
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	0.00	0.00	0.00	0.00	1.83	0.00	0.00	0.00

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 of American Water Works has been consistently low, indicating a conservative capital structure with little reliance on debt financing. The ratio was 0.00 for most of the quarters between March 2020 and December 2024, meaning that the company had no debt and relied primarily on equity to fund its operations and growth. However, there was a notable increase in the debt-to-equity ratio to 1.83 as of December 31, 2020, suggesting a significant increase in the company's debt levels relative to its equity. This increase may have been due to a specific financing decision or capital restructuring during that period. Subsequently, the ratio returned to 0.00 in the following quarters, indicating a return to the previous low debt levels. Overall, the low and stable debt-to-equity ratio indicates a financially secure position for American Water Works with limited financial risk.