California Water Service Group (CWT)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 4,595,530 | 4,264,810 | 3,623,270 | 3,394,250 | 3,111,310 |
| Total stockholders’ equity | US$ in thousands | 1,426,730 | 1,317,590 | 1,177,590 | 921,344 | 779,906 |
| Financial leverage ratio | 3.22 | 3.24 | 3.08 | 3.68 | 3.99 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $4,595,530K ÷ $1,426,730K
= 3.22
The financial leverage ratio of California Water Service Group has displayed fluctuations over the past five years. In 2023, the ratio stood at 3.22, showing an increase compared to the previous year's ratio of 2.92. This indicates that the company relied more on debt to finance its operations in 2023.
Looking further back, the ratio was lower in 2021 at 3.08, but increased significantly in 2020 to 3.68, and was even higher at 3.99 in 2019. These fluctuations suggest changes in the company's capital structure and financial risk over the years.
Overall, the trend in the financial leverage ratio for California Water Service Group indicates a mix of debt and equity financing in its capital structure, with varying levels of leverage used to support the company's operations and growth initiatives. Further analysis would be needed to assess the impact of these leverage levels on the company's financial health and stability.
Peer comparison
Dec 31, 2023