Essential Utilities Inc (WTRG)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 6,826,080 | 6,371,060 | 5,779,500 | 5,507,740 | 2,943,330 |
| Total assets | US$ in thousands | 16,841,500 | 15,719,100 | 14,658,300 | 13,705,300 | 9,361,980 |
| Debt-to-assets ratio | 0.41 | 0.41 | 0.39 | 0.40 | 0.31 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $6,826,080K ÷ $16,841,500K
= 0.41
The debt-to-assets ratio of Essential Utilities Inc has shown relatively consistent levels over the past five years, ranging from 0.33 to 0.43. This ratio indicates the proportion of the company's assets that are financed through debt, with lower ratios suggesting lower financial risk.
Essential Utilities Inc had a debt-to-assets ratio of 0.42 at the end of 2023, which is slightly lower compared to the previous year. This suggests that the company used a lower proportion of debt to finance its assets in 2023, potentially reducing its financial risk.
Overall, Essential Utilities Inc has maintained a moderate level of debt relative to its total assets in recent years. This indicates a balanced approach to capital structure management, where the company is not overly reliant on debt financing. Further analysis of the company's overall financial health and debt management strategies would provide a more comprehensive understanding of its financial stability.
Peer comparison
Dec 31, 2023