Essential Utilities Inc (WTRG)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 18,026,600 | 16,841,500 | 15,719,100 | 14,658,300 | 13,705,300 |
| Total stockholders’ equity | US$ in thousands | 6,198,810 | 5,896,180 | 5,377,390 | 5,184,450 | 4,683,880 |
| Financial leverage ratio | 2.91 | 2.86 | 2.92 | 2.83 | 2.93 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $18,026,600K ÷ $6,198,810K
= 2.91
The financial leverage ratio of Essential Utilities Inc has been relatively stable over the past five years, ranging between 2.83 to 2.93. This indicates that the company has been maintaining a moderate level of financial leverage during this period. A financial leverage ratio around 2.9 suggests that the company is using a combination of debt and equity to finance its operations. While the slight fluctuations in the ratio may reflect changes in the company's debt levels, overall, Essential Utilities Inc appears to have a consistent approach to managing its capital structure. Investors and creditors may view this moderate leverage positively as it indicates a balanced mix of debt and equity financing.
Peer comparison
Dec 31, 2024