Chesapeake Utilities Corporation (CPK)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 1,246,100 | 832,801 | 774,130 | 697,085 | 561,577 |
| Debt-to-capital ratio | 0.49 | 0.41 | 0.42 | 0.42 | 0.44 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,187,080K ÷ ($1,187,080K + $1,246,100K)
= 0.49
The debt-to-capital ratio of Chesapeake Utilities Corp has shown some fluctuations over the past five years. At the end of 2023, the ratio stood at 0.53, indicating that 53% of the company's capital structure was financed through debt. This represents an increase from the previous year when the ratio was 0.49.
Compared to 2021 and 2020 when the ratio was at 0.50, the current ratio reflects a slightly higher reliance on debt financing. However, it is noteworthy that the ratio has decreased from the highest point in 2019 when it was 0.57, suggesting a potential improvement in the company's capital structure efficiency.
Overall, the trend in Chesapeake Utilities Corp's debt-to-capital ratio indicates a moderate level of leverage in its capital structure, with a recent uptick in debt reliance. It is important for stakeholders to monitor this ratio in conjunction with other financial metrics to assess the company's overall financial health and risk profile.
Peer comparison
Dec 31, 2023