American States Water Company (AWR)

Solvency ratios

	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
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
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
Debt-to-equity ratio	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	0.47	0.47	0.49	0.50
Financial leverage ratio	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	2.73	2.69	2.71	2.72

The solvency ratios of American States Water Co. indicate the company's ability to meet its long-term financial obligations and the extent to which it relies on debt financing. The Debt-to-assets ratio has been gradually increasing over the quarters, reaching 0.40 in Q4 2023. This suggests that 40% of the company's assets are funded by debt. The Debt-to-capital ratio also shows a similar trend, indicating that debt accounts for 54% of the company's total capital structure in Q4 2023.

Furthermore, the Debt-to-equity ratio has been consistently rising, reaching 1.17 in Q4 2023, implying that the company has a higher reliance on debt to finance its operations compared to equity. This ratio indicates that for every dollar of equity, the company has $1.17 in debt. Lastly, the Financial leverage ratio shows an increasing trend, indicating that the company's financial leverage has been rising over the quarters, reaching 2.89 in Q4 2023. This implies that the company is financing its assets primarily through debt rather than equity.

Overall, these solvency ratios suggest that American States Water Co. has been increasingly relying on debt to finance its operations and investments, which could potentially increase its financial risk and interest expense over time. Investors and creditors should closely monitor these ratios to assess the company's ability to manage its debt levels and meet its financial obligations in the long run.

Coverage ratios

	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
Interest coverage	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	5.43	5.35	5.10	4.55

The interest coverage ratio for American States Water Co. has been relatively stable over the past eight quarters, ranging from 5.12 to 6.45. This indicates the company's ability to meet its interest obligations with its operating income. A higher interest coverage ratio suggests a greater ability to cover interest expenses and implies lower financial risk for the company.

Based on the data provided, we can observe that the interest coverage ratio has generally remained above 5, indicating a healthy financial position. The slight fluctuation in the ratio over the quarters may be attributed to changes in operating income or interest expenses.

Overall, the consistent performance of American States Water Co. in maintaining a satisfactory interest coverage ratio reflects its financial stability and ability to handle debt obligations effectively.