Chesapeake Utilities Corporation (CPK)
Debt-to-equity 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 stockholders’ equity | US$ in thousands | 1,246,100 | 866,677 | 864,228 | 858,588 | 832,801 | 814,438 | 815,701 | 805,512 | 774,130 | 750,962 | 741,564 | 726,388 | 697,085 | 616,690 | 593,277 | 584,129 | 561,577 | 544,711 | 544,384 | 543,659 |
| Debt-to-equity ratio | 0.95 | 0.74 | 0.75 | 0.76 | 0.69 | 0.72 | 0.72 | 0.74 | 0.71 | 0.67 | 0.67 | 0.70 | 0.73 | 0.84 | 0.72 | 0.75 | 0.78 | 0.69 | 0.51 | 0.53 |
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 eight quarters, ranging from 0.88 to 1.11. This ratio indicates the proportion of the company's debt financing relative to its equity financing. A higher debt-to-equity ratio suggests that the company is relying more on debt to finance its operations and growth, which can increase financial risk.
In Q4 2023, the debt-to-equity ratio increased to 1.11, the highest level in the provided data series. This may indicate that the company took on more debt compared to its equity during this period. However, it is essential to consider the reasons behind this increase in ratio, such as strategic acquisitions or investments.
Conversely, in Q2 2023, the ratio dropped to 0.88, the lowest level during the specified period. A lower debt-to-equity ratio generally implies a higher proportion of equity financing relative to debt, which can signify a more conservative capital structure.
Overall, the trend in Chesapeake Utilities Corp's debt-to-equity ratio indicates some variability in its capital structure management. It is crucial for investors and stakeholders to monitor this ratio closely over time to assess the company's ability to manage its debt obligations and financial risk effectively.
Peer comparison
Dec 31, 2023