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.
Peer comparison
Dec 31, 2023