Essential Utilities Inc (WTRG)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 |
Essential Utilities Inc's solvency ratios indicate a strong financial position with consistently low debt levels relative to its assets, capital, and equity. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have remained at 0.00 throughout the reported periods, signaling that the company has no debt obligations compared to its total assets, capital, and equity.
The Financial leverage ratio has fluctuated slightly but has generally been around 2.8 to 2.9, indicating that the company utilizes moderate financial leverage to support its operations. This indicates a balanced approach to financing, with a level of debt that does not pose a significant risk to the company's solvency.
Overall, Essential Utilities Inc's solvency ratios suggest a stable and healthy financial position, with effective management of debt levels and a strong ability to meet its financial obligations.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 2.57 | 2.43 | 2.42 | 2.47 | 2.48 | 2.51 | 2.55 | 2.63 | 2.83 | 2.92 | 2.91 | 2.91 | 2.96 | 2.91 | 2.95 | 2.92 | 2.44 | 2.42 | 2.71 | 3.08 |
Essential Utilities Inc's interest coverage ratio has been fluctuating over the past few years, ranging from a low of 2.42 in September 2020 to a high of 3.08 in March 2020. The interest coverage ratio measures the company's ability to meet its interest payments on outstanding debt with its operating income.
Overall, the trend shows a slight decline in the interest coverage ratio over the period, indicating that the company's ability to cover its interest expenses with its operating income has weakened slightly. An interest coverage ratio above 2 is generally considered acceptable, as it suggests the company is generating enough income to cover its interest obligations.
However, it is important for investors and creditors to monitor this ratio closely, as a declining trend could indicate potential financial distress in the future if not managed effectively. Further analysis of the company's financial health and cash flow management strategies may provide additional insights into the sustainability of its interest coverage ratio.