Chesapeake Utilities Corporation (CPK)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 3,304,700 | 2,215,040 | 2,114,870 | 1,932,490 | 1,783,200 |
| Total stockholders’ equity | US$ in thousands | 1,246,100 | 832,801 | 774,130 | 697,085 | 561,577 |
| Financial leverage ratio | 2.65 | 2.66 | 2.73 | 2.77 | 3.18 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,304,700K ÷ $1,246,100K
= 2.65
The financial leverage ratio of Chesapeake Utilities Corp has been relatively stable over the past five years, declining from 3.18 in 2019 to 2.65 in 2023. This ratio measures the extent to which the company relies on debt to finance its operations and growth. A higher financial leverage ratio indicates a higher level of debt relative to equity, suggesting higher financial risk. The downward trend observed in the ratio over the period implies a decreasing reliance on debt financing, which can be seen as a positive indicator of improved financial health and risk management. Overall, Chesapeake Utilities Corp appears to be gradually optimizing its capital structure and reducing its financial leverage over the years.
Peer comparison
Dec 31, 2023