Essential Utilities Inc (WTRG)

Debt-to-equity ratio

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
Long-term debt US$ in thousands 6,826,080 6,456,040 6,615,520 6,484,520 6,371,060 6,173,630 6,087,740 5,871,960 5,779,500 5,598,710 5,648,230 5,547,940 5,507,740 5,152,970 5,174,600 4,729,030 2,943,330 2,898,300 2,749,200 2,462,860
Total stockholders’ equity US$ in thousands 5,896,180 5,922,560 5,614,700 5,515,940 5,377,390 5,343,100 5,342,030 5,255,100 5,184,450 5,127,860 4,836,820 4,810,340 4,683,880 4,635,750 4,635,530 4,613,160 3,880,860 3,862,560 3,824,770 1,992,580
Debt-to-equity ratio 1.16 1.09 1.18 1.18 1.18 1.16 1.14 1.12 1.11 1.09 1.17 1.15 1.18 1.11 1.12 1.03 0.76 0.75 0.72 1.24

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $6,826,080K ÷ $5,896,180K
= 1.16

The debt-to-equity ratio of Essential Utilities Inc has shown fluctuations over the past eight quarters, ranging from 1.15 to 1.27. In Q4 2023, the ratio was 1.20, indicating that the company had $1.20 in debt for every $1 of equity.

The general trend over the period indicates that the company has maintained a relatively high level of debt relative to equity, with the ratio consistently above 1. This suggests that Essential Utilities Inc relies more on borrowed funds than shareholder equity to finance its operations and growth initiatives.

While the ratio has varied quarter to quarter, it has generally remained within a relatively narrow range, indicating some stability in the company's capital structure. However, the fluctuations in the ratio may signal changes in the company's financial strategy or performance.

Further analysis and comparison with industry benchmarks would provide more insights into the company's leverage position and financial health.