California Water Service Group (CWT)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 3.16 | 3.22 | 2.92 | 3.08 | 3.68 |
Based on the provided data, California Water Service Group consistently maintains a very strong solvency position as indicated by its solvency ratios.
1. Debt-to-assets ratio: The company's debt-to-assets ratio is consistently at 0.00 over the five years analyzed. This suggests that California Water Service Group has no debt in relation to its total assets during this period, indicating a low level of financial risk and a strong solvency position.
2. Debt-to-capital ratio: Similarly, the debt-to-capital ratio also remains at 0.00 for each year from 2020 to 2024. This reiterates the company's high level of capitalization, where there is no debt relative to its total capital.
3. Debt-to-equity ratio: California Water Service Group's debt-to-equity ratio is also reported as 0.00 across all the years under consideration. This signifies that the company does not rely on debt financing in relation to its equity, reinforcing its stable financial structure and strong solvency position.
4. Financial leverage ratio: The financial leverage ratio fluctuates slightly from 3.08 to 3.68 in 2021 and 2020 respectively, before decreasing to 2.92 in 2022. It then slightly increases to 3.22 in 2023 and drops to 3.16 in 2024. Despite these fluctuations, the financial leverage ratio remains relatively stable, suggesting that the company is using debt as a financing tool in a prudent manner without significantly increasing financial risk.
In summary, California Water Service Group's consistently low debt levels and stable solvency ratios indicate a strong financial position and a sound ability to meet its financial obligations in the long term.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 4.99 | 1.90 | 3.28 | 3.22 | 3.42 |
The interest coverage ratio of California Water Service Group has fluctuated over the years, starting at 3.42 in December 2020, decreasing to 3.22 in December 2021, and then slightly increasing to 3.28 in December 2022. However, there was a notable decline in December 2023 to 1.90, indicating a potential strain in meeting interest obligations. Nonetheless, in December 2024, the interest coverage ratio improved significantly to 4.99, reflecting a stronger ability to cover interest expenses with operating income. Overall, the company's interest coverage has shown variability, with 2023 standing out as a year of comparatively lower coverage.