Essential Utilities Inc (WTRG)
Debt-to-capital ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 6,198,810 | 5,896,180 | 5,377,390 | 5,184,450 | 4,683,880 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $6,198,810K)
= 0.00
The debt-to-capital ratio for Essential Utilities Inc has consistently remained at 0.00 from December 31, 2020, to December 31, 2024. This indicates that the company has not relied heavily on debt to finance its operations and investments relative to its total capital structure. A low or zero debt-to-capital ratio typically suggests a lower financial risk and a conservative approach to managing its capital structure. It signifies that the company has a strong capital base and may be financing its operations more through equity or other sources of capital. It's important to note that while a low debt-to-capital ratio is generally favorable, it's essential to analyze other financial ratios and factors to gain a comprehensive understanding of the company's financial health and risk profile.
Peer comparison
Dec 31, 2024