Essential Utilities Inc (WTRG)

Financial leverage ratio

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Total assets	US$ in thousands	18,026,600	17,564,600	17,252,100	17,054,300	16,841,500	16,432,800	16,101,900	15,818,300	15,719,100	15,279,800	15,046,200	14,877,000	14,658,300	14,236,500	13,934,000	13,821,900	13,705,300	13,399,500	13,028,400	12,929,000
Total stockholders’ equity	US$ in thousands	6,198,810	6,180,930	6,163,230	6,081,130	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
Financial leverage ratio		2.91	2.84	2.80	2.80	2.86	2.77	2.87	2.87	2.92	2.86	2.82	2.83	2.83	2.78	2.88	2.87	2.93	2.89	2.81	2.80

December 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $18,026,600K ÷ $6,198,810K
= 2.91

Essential Utilities Inc's financial leverage ratio has been relatively stable over the analyzed period, ranging between 2.77 to 2.93. This indicates that the company relies moderately on debt financing to fund its operations and investments. The ratio measures the proportion of the company's debt to its equity, with a higher ratio suggesting higher financial risk due to increased debt levels. Essential Utilities Inc's consistent financial leverage ratio indicates a balanced approach to capital structure management, with a careful mix of debt and equity to support its growth and financial stability. It is important for investors and stakeholders to monitor this ratio over time to assess the company's ability to meet its debt obligations and manage financial risks effectively.