Chesapeake Utilities Corporation (CPK)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 2.57 | 2.65 | 2.66 | 2.73 | 2.77 |
Chesapeake Utilities Corporation demonstrates strong solvency ratios as indicated by its consistently low debt-to-assets, debt-to-capital, and debt-to-equity ratios of 0.00 across the years 2020 to 2024. This indicates that the company has little to no reliance on debt financing to support its assets and operations.
Furthermore, the financial leverage ratio has shown a declining trend from 2.77 in 2020 to 2.57 in 2024. This suggests that the company's reliance on debt in relation to equity has been decreasing over the years, reflecting a favorable financial position and lower financial risk.
Overall, Chesapeake Utilities Corporation's solvency ratios reflect a conservative capital structure with minimal debt levels, indicating a strong financial position and ability to meet its financial obligations efficiently.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 3.37 | 4.13 | 5.87 | 6.60 | 5.16 |
The interest coverage ratio measures the company's ability to meet its interest expenses with operating income. Examining the data provided for Chesapeake Utilities Corporation from 2020 to 2024, we observe fluctuations in the interest coverage ratio over the years.
In 2020, the interest coverage ratio was 5.16, indicating that the company generated operating income 5.16 times more than the interest expenses. This showed a reasonable ability to cover interest obligations.
By the end of 2021, the interest coverage ratio improved to 6.60, suggesting a stronger ability to meet interest payments out of operating income.
In 2022, the interest coverage ratio slightly decreased to 5.87, still indicating a favorable position in meeting interest obligations.
However, in 2023, there was a notable decrease in the interest coverage ratio to 4.13, which may raise concerns about the company's ability to cover interest expenses comfortably.
The trend continued in 2024 with a further decline to 3.37, indicating a significant decrease in the ability to cover interest payments with operating income.
Overall, while the interest coverage ratios for Chesapeake Utilities Corporation varied over the years, it is important to closely monitor the downward trend in recent years to ensure that the company can meet its interest payment obligations efficiently in the future.