American States Water Company (AWR)

Debt-to-capital ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Long-term debt US$ in thousands 640,382 575,555 446,547 412,176 440,348
Total stockholders’ equity US$ in thousands 920,051 776,109 709,549 685,947 641,673
Debt-to-capital ratio 0.41 0.43 0.39 0.38 0.41

December 31, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $640,382K ÷ ($640,382K + $920,051K)
= 0.41

The debt-to-capital ratio for American States Water Company has been relatively stable over the five-year period from December 31, 2020, to December 31, 2024, ranging between 0.38 and 0.43. This ratio indicates the proportion of the company's capital that is financed through debt.

A debt-to-capital ratio of 0.38 to 0.43 suggests that American States Water Company relies moderately on debt to fund its operations and investments, with a significant portion of its capital being derived from equity. The slight fluctuations in the ratio over the years may be indicative of changes in the company's financing strategies or capital structure adjustments.

Overall, the company's debt-to-capital ratio remains within a reasonable range, indicating a balanced approach to debt and equity financing. It is essential for stakeholders to monitor this ratio in conjunction with other financial metrics to assess the company's overall financial health and risk profile.