American Water Works (AWK)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 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 | 22,682,000 | 22,238,000 | 21,854,000 | 21,464,000 |
| 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 |
| Financial leverage ratio | 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 | 3.71 | 3.59 | 3.63 | 3.62 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $30,298,000K ÷ $9,797,000K
= 3.09
American Water Works Co. Inc.'s financial leverage ratio has shown some fluctuation over the past eight quarters. The ratio measures the extent to which the company relies on debt to finance its operations. A higher financial leverage ratio indicates a greater reliance on debt, while a lower ratio suggests a lower level of debt financing relative to equity.
In the most recent quarter, Q4 2023, the financial leverage ratio was 3.09, which was slightly higher compared to the previous quarter, Q3 2023, where the ratio was 3.01. This uptick suggests that American Water Works Co. Inc. may have increased its debt levels relative to its equity during this period.
Looking back over the eight quarters presented in the table, the financial leverage ratio has ranged from a low of 2.96 in Q1 2023 to a high of 3.61 in Q4 2022. This fluctuation indicates some variation in the company's capital structure and its approach to funding its operations.
Overall, it is advisable for investors and stakeholders to monitor American Water Works Co. Inc.'s financial leverage ratio over time to understand the company's debt management strategies and potential risks associated with its capital structure.
Peer comparison
Dec 31, 2023