SJW Corporation (SJW)

Solvency ratios

	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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Debt-to-assets ratio	0.35	0.40	0.41	0.42	0.40	0.40	0.41	0.42	0.43	0.41	0.40	0.39	0.39	0.40	0.41	0.41	0.41	0.25	0.25	0.26
Debt-to-capital ratio	0.55	0.56	0.56	0.57	0.57	0.58	0.59	0.59	0.59	0.59	0.58	0.57	0.58	0.59	0.60	0.60	0.59	0.36	0.36	0.37
Debt-to-equity ratio	1.24	1.26	1.28	1.32	1.34	1.39	1.41	1.45	1.44	1.42	1.39	1.33	1.40	1.43	1.47	1.49	1.44	0.57	0.57	0.58
Financial leverage ratio	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	3.59	3.59	3.52	2.26	2.24	2.21

The solvency ratios of SJW Group indicate its ability to meet its long-term financial obligations and manage its debt levels efficiently.

1. Debt-to-assets ratio: This ratio shows the proportion of the company's assets financed by debt. SJW Group's debt-to-assets ratio has decreased from 0.46 in Q4 2022 to 0.40 in Q4 2023, indicating a positive trend in the company's ability to fund its assets with less debt.

2. Debt-to-capital ratio: This ratio measures the percentage of a company's capital that is contributed by debt. SJW Group's debt-to-capital ratio has shown a slight decline from 0.60 in Q4 2022 to 0.59 in Q4 2023, indicating a relatively stable capital structure with a decreasing reliance on debt financing.

3. Debt-to-equity ratio: This ratio reflects the proportion of debt and equity in the company's capital structure. SJW Group's debt-to-equity ratio has fluctuated over the quarters but, generally, it has remained within the range of 1.39 to 1.58. The decrease in the latest quarter may suggest a slightly lower debt burden compared to the previous periods.

4. Financial leverage ratio: This ratio indicates the company's level of financial leverage and risk. SJW Group's financial leverage ratio has also fluctuated over the quarters but has generally remained consistent around the range of 3.15 to 3.52. This suggests the company has maintained a stable level of leverage in its financial structure.

Overall, based on these solvency ratios, SJW Group appears to have a reasonable level of solvency and an adequate ability to manage its debt obligations while maintaining a balanced capital structure.

Coverage ratios

	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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Interest coverage	2.37	2.67	2.49	2.50	2.42	2.17	2.12	2.32	2.27	2.09	2.25	2.26	2.29	1.99	1.72	1.68	2.00	2.94	3.30	3.33

SJW Group's interest coverage ratio has shown fluctuations over the past eight quarters. The ratio measures the company's ability to pay its interest expenses from its operating income, with a higher ratio indicating a stronger ability to meet interest obligations.

In Q4 2023, the interest coverage ratio was 2.26, lower than the previous quarter's ratio of 2.51. This suggests a slight decrease in the company's ability to cover its interest expenses from its operating income. However, the ratio remains above 2, indicating that SJW Group is generating sufficient operating income to cover its interest payments.

Looking at the trend over the past eight quarters, there has been some variability in the interest coverage ratio, ranging from a low of 1.77 in Q2 2022 to a high of 2.51 in Q3 2023. Overall, the trend shows a general improvement in the company's ability to cover interest expenses, as the ratio has increased from previous lows.

It is important for investors and creditors to monitor SJW Group's interest coverage ratio moving forward to ensure the company maintains a healthy financial position and can continue to meet its debt obligations.