American Water Works (AWK)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 32,830,000 | 31,790,000 | 31,215,000 | 31,086,000 | 30,298,000 | 29,818,000 | 29,496,000 | 28,286,000 | 27,787,000 | 27,126,000 | 26,574,000 | 25,694,000 | 26,075,000 | 25,333,000 | 24,952,000 | 24,525,000 | 24,766,000 | 24,394,000 | 24,009,000 | 23,546,000 |
| 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 |
| Financial leverage ratio | 3.18 | 3.07 | 3.07 | 3.11 | 3.09 | 3.01 | 3.04 | 2.96 | 3.61 | 3.50 | 3.51 | 3.44 | 3.57 | 3.69 | 3.73 | 3.73 | 3.84 | 3.75 | 3.79 | 3.77 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $32,830,000K ÷ $10,332,000K
= 3.18
American Water Works' financial leverage ratio has shown fluctuations over the reporting periods provided. The ratio ranged from a high of 3.84 in December 31, 2020, to a low of 2.96 in March 31, 2023. Overall, the trend indicates a general decrease in the financial leverage ratio from 2022 to 2024, suggesting a potential improvement in the company's ability to meet its financial obligations using debt financing.
This decreasing trend in the financial leverage ratio can indicate that American Water Works may be relying less on debt to finance its operations or that the company's equity base is strengthening relative to its debt levels. A lower financial leverage ratio is generally viewed positively as it signifies lower financial risk and increased financial stability.
It is important for investors and stakeholders to continue monitoring American Water Works' financial leverage ratio along with other financial metrics to assess the company's long-term financial health and sustainability.
Peer comparison
Dec 31, 2024