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.