American States Water Company (AWR)

Solvency ratios

	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Debt-to-assets ratio	0.26	0.26	0.27	0.25	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
Debt-to-capital ratio	0.41	0.42	0.43	0.42	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
Debt-to-equity ratio	0.70	0.73	0.77	0.72	0.74	0.75	0.76	0.79	0.63	0.63	0.64	0.60	0.60	0.61	0.62	0.68	0.69	0.69	0.45	0.46
Financial leverage ratio	2.72	2.75	2.82	2.86	2.89	2.86	2.83	2.82	2.87	2.81	2.81	2.78	2.77	2.76	2.77	2.76	2.79	2.72	2.74	2.75

American States Water Company's solvency ratios indicate the company's ability to meet its long-term financial obligations. The debt-to-assets ratio has remained relatively stable around 0.22 to 0.26 over the past few years, suggesting that the company has a low proportion of debt compared to its total assets.

The debt-to-capital ratio has shown a slight fluctuation but has generally stayed between 0.37 and 0.43, indicating that American States Water Company relies more on equity financing compared to debt to fund its operations.

The debt-to-equity ratio has also been fairly consistent, ranging from 0.60 to 0.79, showing that the company has a moderate level of debt relative to its equity. The trend suggests that American States Water Company's financial structure is sustainable, with a reasonable balance between debt and equity.

The financial leverage ratio, which measures the extent of a company's financial leverage, has varied between 2.72 and 2.89. This indicates that the company has been managing its financial leverage effectively, although there have been slight fluctuations over the years.

Overall, the solvency ratios reflect American States Water Company's sound financial position and its ability to meet its financial obligations with a balanced mix of debt and equity.

Coverage ratios

	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Interest coverage	3.82	3.86	3.93	4.29	4.89	5.06	5.36	5.16	4.78	5.39	5.91	6.33	6.46	6.45	6.20	6.36	6.09	5.66	5.71	5.56

American States Water Company has maintained a relatively stable interest coverage ratio over the past few years, indicating its ability to meet its interest obligations comfortably. The interest coverage ratio has fluctuated between approximately 3.82 to 6.46, with the highest ratio recorded in December 31, 2021, and the lowest in December 31, 2024.

Overall, the company's interest coverage ratio demonstrates a healthy financial position, as the company has consistently generated sufficient operating income to cover its interest expenses. However, the declining trend in recent periods, specifically from March 31, 2024, to December 31, 2024, suggests a potential increase in financial risk. It may be important for stakeholders to closely monitor the company's interest coverage ratio to ensure continued financial stability.