American States Water Company (AWR)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.26 | 0.26 | 0.22 | 0.22 | 0.25 |
| Debt-to-capital ratio | 0.41 | 0.43 | 0.39 | 0.38 | 0.41 |
| Debt-to-equity ratio | 0.70 | 0.74 | 0.63 | 0.60 | 0.69 |
| Financial leverage ratio | 2.72 | 2.89 | 2.87 | 2.77 | 2.79 |
The solvency ratios of American States Water Company show a consistent trend over the period analyzed. The Debt-to-assets ratio decreased slightly from 0.25 in 2020 to 0.22 in 2021 and remained at the same level in 2022. However, it increased to 0.26 in both 2023 and 2024. This indicates that the company's reliance on debt in relation to its total assets fluctuated slightly but generally remained stable.
Similarly, the Debt-to-capital ratio decreased from 0.41 in 2020 to 0.38 in 2021, increased to 0.39 in 2022, and slightly rose to 0.43 in 2023 before decreasing again to 0.41 in 2024. This suggests varying levels of debt compared to the company's total capital structure over the years.
The Debt-to-equity ratio showed a decrease from 0.69 in 2020 to 0.60 in 2021, followed by an increase to 0.63 in 2022 and a further rise to 0.74 in 2023. It then decreased to 0.70 in 2024, indicating fluctuations and shifts in the ratio of debt to equity financing.
The Financial leverage ratio remained relatively stable around the range of 2.77 to 2.89 from 2020 to 2023, with a slight decrease to 2.72 in 2024. This ratio indicates the company's ability to meet its financial obligations through the use of debt.
Overall, the solvency ratios suggest that American States Water Company has managed its debt levels and capital structure prudently over the analyzed period, with some variations observed in certain ratios from year to year.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 3.66 | 4.89 | 4.78 | 6.46 | 6.09 |
American States Water Company's interest coverage ratio has shown some fluctuations over the past five years. The ratio stood at 6.09 on December 31, 2020, indicating that the company generated earnings 6.09 times greater than its interest expense for that year.
In the subsequent years, the interest coverage ratio improved slightly to 6.46 by December 31, 2021, demonstrating a stronger ability to cover interest obligations. However, the ratio declined in the following years to 4.78 on December 31, 2022, and 4.89 on December 31, 2023, possibly signaling increased interest costs relative to earnings.
By December 31, 2024, the interest coverage ratio further decreased to 3.66, indicating a potential decrease in the company's ability to cover its interest expenses with operating income.
Overall, American States Water Company's interest coverage ratio has shown variability over time, suggesting the need for careful monitoring of the company's financial health and debt management strategies.