SJW Group Common Stock (SJW)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.43 | 3.52 | 3.27 | 3.37 | 3.62 |
The solvency ratios of SJW Group Common Stock indicate a consistently low level of debt relative to assets, capital, and equity over the five-year period from 2020 to 2024. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio all remained at 0.00 across the years, highlighting the company's prudence in managing its debt levels in relation to its financial structure.
The Financial leverage ratio, which measures the extent of a company's leverage in financing its assets, decreased from 3.62 in 2020 to 1.43 in 2024. This declining trend suggests that SJW Group Common Stock has been progressively reducing its reliance on debt to fund its operations and investments, thereby enhancing its financial stability and reducing the associated risks.
Overall, the consistently low debt ratios and decreasing financial leverage ratio indicate that SJW Group Common Stock has maintained a strong solvency position throughout the period, demonstrating prudent financial management and effective risk mitigation strategies.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 2.44 | 2.37 | 2.24 | 2.27 | 2.16 |
The interest coverage ratio for SJW Group Common Stock has shown a relatively stable trend over the past five years. It was 2.16 at the end of December 31, 2020, and has gradually improved to 2.44 by the end of December 31, 2024. This indicates that SJW Group's ability to cover its interest expenses with its operating income has been consistent and has slightly strengthened over the years. An interest coverage ratio above 1 suggests that SJW Group is generating sufficient operating income to comfortably cover its interest obligations, which is a positive sign for investors and creditors. Overall, the consistent improvement in the interest coverage ratio reflects the company's sound financial health and ability to manage its debt obligations effectively.