SJW Corporation (SJW)

Debt-to-equity ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	1,526,700	1,491,960	1,492,940	1,287,580	1,283,600
Total stockholders’ equity	US$ in thousands	1,233,400	1,110,870	1,034,520	917,160	889,984
Debt-to-equity ratio		1.24	1.34	1.44	1.40	1.44

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,526,700K ÷ $1,233,400K
= 1.24

The debt-to-equity ratio of SJW Group has shown a declining trend over the past five years, decreasing from 1.60 in 2019 to 1.42 in 2023. This indicates that the company has been relying less on debt financing and moving towards a more equity-based capital structure. A lower debt-to-equity ratio generally suggests lower financial risk and greater financial stability as the company is less leveraged. However, it's important to note that a high debt-to-equity ratio can also indicate that the company is using debt to finance its operations, which may be advantageous in some cases. Overall, the decreasing trend in SJW Group's debt-to-equity ratio signals a positive shift towards a more balanced capital structure.