American States Water Company (AWR)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	776,109	771,337	755,066	730,848	709,549	705,504	694,225	687,425	685,947	678,935	664,134	649,393	641,673	633,820	619,288	604,583	601,530	595,947	578,787	561,500
Debt-to-capital ratio		0.43	0.43	0.43	0.44	0.39	0.39	0.39	0.37	0.38	0.38	0.38	0.40	0.41	0.41	0.31	0.32	0.32	0.32	0.33	0.33

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $575,555K ÷ ($575,555K + $776,109K)
= 0.43

The debt-to-capital ratio of American States Water Co. has been consistently increasing over the past eight quarters, starting at 0.48 in Q1 2022 and reaching 0.54 in Q4 2023. This indicates that the company's reliance on debt as a financing source relative to its total capital has been growing. While the ratios are within the reasonable range for a utility company, investors and creditors may closely monitor this trend to assess the company's financial leverage and risk exposure. Overall, the incremental upward trend in the debt-to-capital ratio suggests that American States Water Co. has been gradually taking on more debt in relation to its capital structure.