California Water Service Group (CWT)

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 1,052,770 1,052,490 1,055,790 781,100 786,754
Total stockholders’ equity US$ in thousands 1,426,730 1,317,590 1,177,590 921,344 779,906
Debt-to-capital ratio 0.42 0.44 0.47 0.46 0.50

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,052,770K ÷ ($1,052,770K + $1,426,730K)
= 0.42

The debt-to-capital ratio of California Water Service Group has exhibited a decreasing trend over the past five years, dropping from 0.56 in 2019 to 0.46 in 2023. This indicates that the company has been relying less on debt financing and more on equity financing to fund its operations and investments. A lower debt-to-capital ratio implies a lower financial risk as the company has a smaller proportion of debt in its capital structure compared to equity. This trend suggests that California Water Service Group is becoming more conservative in its capital structure management, which may enhance its financial stability and resilience to economic downturns.