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.
Peer comparison
Dec 31, 2023