American Water Works (AWK)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets 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 | 0.48 | 0.00 | 0.00 | 0.00 | 0.43 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital 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 | 0.65 | 0.00 | 0.00 | 0.00 | 0.61 | 0.00 | 0.00 | 0.00 |
| 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 |
| 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 |
The solvency ratios of American Water Works Co. Inc. indicate the company's ability to meet its long-term financial obligations and manage its debt levels effectively. The debt-to-assets ratio has been relatively stable around 0.41 to 0.45 over the past few quarters, signaling that a significant portion of the company's assets are financed by debt.
The debt-to-capital ratio has shown a similar trend, remaining in the range of 0.54 to 0.62. This metric indicates the proportion of the company's capital structure that is funded by debt, with the recent values suggesting a moderate reliance on debt financing.
The debt-to-equity ratio has fluctuated between 1.17 to 1.61, indicating a significant increase in debt relative to equity in certain periods. A higher ratio implies higher financial risk due to the increased reliance on debt for funding.
The financial leverage ratio has also varied, ranging from 2.96 to 3.61. This metric reflects the level of debt in relation to equity and indicates the company's ability to generate returns on the borrowed funds. The higher the ratio, the higher the financial risk.
In summary, while the solvency ratios of American Water Works Co. Inc. have been relatively stable in recent quarters, the variations in the debt-to-equity and financial leverage ratios suggest fluctuations in the company's capital structure and financial risk levels. Monitoring these ratios can help assess the company's ability to withstand financial challenges and maintain a healthy balance between debt and equity financing.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 3.27 | 3.20 | 3.16 | 2.95 | 2.94 | 2.93 | 2.95 | 3.00 | 2.97 | 3.11 | 3.16 | 3.12 | 3.16 | 3.07 | 3.02 | 3.04 | 3.06 | 3.18 | 3.06 | 3.13 |
The interest coverage ratio for American Water Works Co. Inc. has been relatively stable over the past eight quarters, ranging from 3.13 to 3.89. This indicates that the company's ability to cover its interest expenses with earnings before interest and taxes (EBIT) has been consistently strong. A higher interest coverage ratio indicates a greater capacity to meet interest payments on its debt obligations. The stability of the ratio suggests that the company has been effectively managing its debt and generating sufficient operating income to cover its interest expenses. Overall, American Water Works Co. Inc. appears to have a healthy financial position in terms of its ability to service its debt.