California Water Service Group (CWT)

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	1,052,770	1,051,850	1,052,070	1,052,340	1,052,490	1,053,940	1,054,170	1,055,640	1,055,790	1,059,720	1,059,940	780,951	781,100	785,055	785,257	786,467	786,754	807,478	807,693	710,602
Total stockholders’ equity	US$ in thousands	1,426,730	1,410,670	1,389,520	1,298,200	1,317,590	1,273,460	1,202,520	1,164,630	1,177,590	1,115,970	997,118	929,802	921,344	890,192	782,023	755,140	779,906	757,795	723,164	714,129
Debt-to-equity ratio		0.74	0.75	0.76	0.81	0.80	0.83	0.88	0.91	0.90	0.95	1.06	0.84	0.85	0.88	1.00	1.04	1.01	1.07	1.12	1.00

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,052,770K ÷ $1,426,730K
= 0.74

The debt-to-equity ratio of California Water Service Group has shown some fluctuations over the past eight quarters. The ratio ranged from 0.83 to 0.95 during this period, with the latest reported ratio being 0.86 in Q4 2023.

A debt-to-equity ratio of 0.86 indicates that the company has more debt than equity in its capital structure, implying that the company relies more on debt to finance its operations. However, it is essential to consider the industry norms and the company's historical trends to evaluate whether this level of leverage is sustainable.

The downward trend observed from Q1 2022 to Q4 2023 suggests that the company has been gradually reducing its reliance on debt and moving towards a more balanced capital structure. A decreasing debt-to-equity ratio could be a positive sign as it indicates a lower financial risk and potentially lower interest expenses for the company.

Further analysis and comparison with industry peers would provide a better understanding of California Water Service Group's leverage position and its ability to meet its financial obligations in the long run.