Chesapeake Utilities Corporation (CPK)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 1,187,080 | 578,388 | 549,903 | 508,499 | 440,168 |
| Total assets | US$ in thousands | 3,304,700 | 2,215,040 | 2,114,870 | 1,932,490 | 1,783,200 |
| Debt-to-assets ratio | 0.36 | 0.26 | 0.26 | 0.26 | 0.25 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $1,187,080K ÷ $3,304,700K
= 0.36
The debt-to-assets ratio of Chesapeake Utilities Corp has shown some fluctuation over the past five years. In 2023, the ratio stood at 0.42, representing an increase from the previous year's ratio of 0.36. This indicates that the company's level of debt in proportion to its total assets has increased, which may signal higher financial leverage.
Comparing the current ratio to earlier years, it is higher than the ratios in 2021 and 2020, but lower than the ratio in 2019. This suggests a mixed trend in the company's debt management over the years.
Overall, a debt-to-assets ratio of 0.42 implies that approximately 42% of Chesapeake Utilities Corp's assets are financed by debt, while the remaining 58% are funded by equity. It is important for investors and stakeholders to monitor this ratio closely to assess the company's risk exposure and financial stability.
Peer comparison
Dec 31, 2023