American Water Works (AWK)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 32,830,000 | 30,298,000 | 27,787,000 | 26,075,000 | 24,766,000 |
| Total stockholders’ equity | US$ in thousands | 10,332,000 | 9,797,000 | 7,693,000 | 7,298,000 | 6,454,000 |
| Financial leverage ratio | 3.18 | 3.09 | 3.61 | 3.57 | 3.84 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $32,830,000K ÷ $10,332,000K
= 3.18
The financial leverage ratio of American Water Works has shown some fluctuations over the years based on the provided data. It decreased from 3.84 in December 2020 to 3.57 in December 2021, then slightly increased to 3.61 in December 2022. Subsequently, there was a notable decrease to 3.09 in December 2023, followed by a slight increase to 3.18 in December 2024. The changes in the financial leverage ratio indicate varying levels of debt utilization by the company in relation to its equity. Monitoring this ratio is crucial for assessing the company's overall financial risk and its ability to meet its debt obligations.
Peer comparison
Dec 31, 2024