Chesapeake Utilities Corporation (CPK)
Debt-to-equity 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-equity ratio | 0.95 | 0.69 | 0.71 | 0.73 | 0.78 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,187,080K ÷ $1,246,100K
= 0.95
The debt-to-equity ratio of Chesapeake Utilities Corp has fluctuated over the past five years. In 2023, the ratio increased to 1.11 from 0.96 in 2022, indicating a higher level of debt relative to equity. This suggests that the company may be relying more on debt financing to fund its operations or growth initiatives.
Comparing to previous years, the ratio in 2023 is higher than the ratios in 2021 and 2020, indicating an increased reliance on debt. However, it is lower than the ratio in 2019, when the company had a higher level of debt relative to equity.
This fluctuation in the debt-to-equity ratio could be due to various factors such as changes in the company's capital structure, debt repayment or issuance, profitability, or investment activities. It is important for stakeholders to monitor this ratio to assess the company's financial leverage and risk profile.
Peer comparison
Dec 31, 2023