H2O America (HTO)

Financial leverage ratio

Jun 30, 2025 Mar 31, 2025 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
Total assets US$ in thousands 4,846,930 4,728,810 4,658,310 4,552,300 4,439,430 4,367,510 4,345,070 3,843,430 3,712,160 3,652,500 3,755,060 3,604,700 3,541,050 3,511,880 3,492,400 3,469,740 3,409,520 3,332,140 3,311,460 3,259,710
Total stockholders’ equity US$ in thousands 1,465,970 1,397,340 1,366,970 1,333,800 1,274,610 1,240,250 1,233,400 1,220,250 1,182,720 1,152,480 1,110,870 1,049,350 1,029,840 1,028,420 1,034,520 1,000,710 989,679 978,296 917,160 913,061
Financial leverage ratio 3.31 3.38 3.41 3.41 3.48 3.52 3.52 3.15 3.14 3.17 3.38 3.44 3.44 3.41 3.38 3.47 3.45 3.41 3.61 3.57

June 30, 2025 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $4,846,930K ÷ $1,465,970K
= 3.31

The financial leverage ratio of H2O America has demonstrated relatively consistent levels over the analyzed period, indicating a stable approach toward leveraging debt relative to equity. Starting at 3.57 times as of September 30, 2020, the ratio experienced marginal fluctuations, peaking slightly at 3.61 by the end of 2020. Throughout 2021, the ratio generally stabilized within the range of approximately 3.38 to 3.47, reflecting steady leverage management during that period.

In 2022, the ratio maintained similar levels, oscillating narrowly around 3.41 to 3.44, which suggests that the company's leverage remained consistent. A modest decline was observed in early 2023, with the ratio reaching approximately 3.17 at the end of March 2023, indicating a slight reduction in leverage. This reduction was maintained through mid-2023, with ratios around 3.14 to 3.15, suggesting a potential effort to lower debt levels or moderate leverage.

However, in late 2023, there was a noticeable uptick, with the ratio increasing to 3.52 as of December 2023 and remaining at that level into the first quarter of 2024. This suggests a deliberate or structural shift toward increased leverage during this period. Following this peak, the ratio slightly decreased to approximately 3.48 in June 2024 and further to around 3.41 by September 2024, maintaining a relatively stable leverage level thereafter, with minor fluctuations observed through the end of 2024 and into mid-2025, with ratios between 3.31 and 3.52.

Overall, the company's financial leverage ratio has remained within a moderate range over the analyzed timeframe. The observed fluctuations reflect periods of slight adjustments in leverage strategy but largely depict a stable leverage profile, indicating effective management of debt relative to equity throughout this period.