Chesapeake Utilities Corporation (CPK)
Debt-to-assets 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 | 1,187,080 | 643,801 | 645,742 | 656,284 | 578,388 | 583,833 | 585,805 | 597,878 | 549,903 | 505,459 | 498,450 | 508,525 | 508,499 | 519,971 | 430,106 | 440,183 | 440,168 | 375,810 | 275,924 | 285,998 |
| Total assets | US$ in thousands | 3,304,700 | 2,240,750 | 2,204,490 | 2,197,550 | 2,215,040 | 2,157,420 | 2,117,340 | 2,109,630 | 2,114,870 | 2,021,830 | 1,972,340 | 1,953,950 | 1,932,490 | 1,888,090 | 1,822,180 | 1,788,220 | 1,783,200 | 1,714,240 | 1,681,040 | 1,682,800 |
| Debt-to-assets ratio | 0.36 | 0.29 | 0.29 | 0.30 | 0.26 | 0.27 | 0.28 | 0.28 | 0.26 | 0.25 | 0.25 | 0.26 | 0.26 | 0.28 | 0.24 | 0.25 | 0.25 | 0.22 | 0.16 | 0.17 |
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 been relatively stable over the past eight quarters, ranging between 0.35 and 0.42. A decreasing trend is visible from Q4 2022 to Q1 2023, with the ratio consistently around 0.35 for the majority of this period.
The debt-to-assets ratio shows the proportion of the company's total debt compared to its total assets. A ratio of 0.35 to 0.42 indicates that, on average, Chesapeake Utilities Corp finances 35% to 42% of its assets through debt, while the remaining percentage is funded through equity or other sources.
A ratio of around 0.35 to 0.42 suggests that Chesapeake Utilities Corp has a moderate level of leverage, indicating that a significant portion of its assets are funded through debt. This level of leverage can be considered reasonable depending on the industry norms and the company's overall financial health.
It is essential for investors and creditors to monitor changes in the debt-to-assets ratio over time to assess the company's ability to meet its debt obligations and manage financial risk. Overall, the stable trend in Chesapeake Utilities Corp's debt-to-assets ratio implies a consistent approach to balancing debt and equity in its capital structure over the analyzed quarters.
Peer comparison
Dec 31, 2023