California Water Service Group (CWT)
Solvency ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 3.16 | 3.08 | 3.15 | 3.26 | 3.29 | 2.86 | 2.87 | 2.99 | 2.92 | 2.99 | 3.06 | 3.12 | 3.08 | 3.30 | 3.56 | 3.73 | 3.68 | 3.94 | 4.30 | 4.29 |
The solvency ratios of California Water Service Group indicate a consistently low level of debt relative to its assets, capital, and equity over the analyzed period from March 31, 2020, to December 31, 2024. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio all remained at 0.00 throughout this timeframe, indicating that the company has not taken on significant debt in relation to its assets, capital, or equity.
Furthermore, the Financial Leverage Ratio, which measures the extent to which the company is using debt to finance its operations, decreased gradually from 4.29 on March 31, 2020, to 3.16 on December 31, 2024. This downward trend suggests that the company is gradually reducing its reliance on debt financing, which can enhance its solvency and financial stability.
Overall, the solvency ratios of California Water Service Group reflect a conservative financial structure with minimal debt levels, which can contribute to a lower risk of financial distress and improve the company's ability to meet its financial obligations in the long term.
Coverage ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 4.88 | 4.96 | 4.32 | 3.67 | 1.70 | 1.76 | 2.29 | 2.63 | 3.28 | 2.93 | 2.94 | 3.28 | 3.22 | 3.54 | 4.65 | 3.84 | 3.35 | 3.32 | 2.00 | 2.41 |
Interest coverage is a financial ratio that measures a company's ability to pay interest on its outstanding debt. It is calculated by dividing earnings before interest and taxes (EBIT) by the interest expense.
Analyzing the interest coverage of California Water Service Group from March 31, 2020, to December 31, 2024, we observe fluctuations in the ratio over time. The interest coverage ratio ranged from a low of 1.70 on December 31, 2023, to a high of 4.96 on September 30, 2024. Generally, a higher interest coverage ratio is favorable as it indicates that the company has more earnings to cover its interest obligations.
The company's interest coverage ratio experienced a significant increase in the first half of 2021, reaching a peak of 4.65 on June 30, 2021. This suggests an improvement in the company's ability to meet its interest payments with its earnings. However, the ratio saw a decline towards the end of 2022 and into 2023 before rebounding in the latter half of 2024.
Overall, the interest coverage ratio of California Water Service Group appears to have fluctuated during the period under review. It is essential for investors and analysts to monitor this ratio as it provides insights into the company's ability to service its debt obligations with its operating income.