American States Water Company (AWR)

Debt-to-assets 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
Long-term debt	US$ in thousands	575,555	575,459	576,376	576,431	446,547	446,817	446,940	412,150	412,176	412,093	412,345	440,326	440,348	440,343	280,886	280,971	280,996	281,001	281,014	281,070
Total assets	US$ in thousands	2,246,120	2,205,230	2,139,640	2,060,370	2,034,370	1,982,580	1,949,650	1,913,930	1,900,980	1,874,800	1,842,360	1,792,820	1,791,600	1,726,420	1,697,970	1,660,890	1,641,330	1,604,380	1,567,280	1,526,100
Debt-to-assets ratio		0.26	0.26	0.27	0.28	0.22	0.23	0.23	0.22	0.22	0.22	0.22	0.25	0.25	0.26	0.17	0.17	0.17	0.18	0.18	0.18

December 31, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $575,555K ÷ $2,246,120K
= 0.26

The debt-to-assets ratio of American States Water Co. has been gradually increasing over the past eight quarters, indicating a rising level of debt relative to its total assets. The ratio stood at 0.33 in Q1 2022 and has steadily increased to 0.40 in Q4 2023. This trend suggests that the company is relying more on debt financing to support its operations and investments.

A higher debt-to-assets ratio can indicate increased financial risk as the company has a higher proportion of liabilities compared to its assets. It may also suggest that the company is more leveraged and could face challenges in meeting its debt obligations, especially in times of economic downturn or rising interest rates.

It is essential for investors and stakeholders to monitor this ratio closely to assess the company's financial health and risk profile. If the trend continues, it may be a signal for potential liquidity issues or financial distress in the future.