Essential Utilities Inc (WTRG)

Solvency ratios

	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
Debt-to-assets ratio	0.41	0.39	0.41	0.41	0.41	0.40	0.40	0.39	0.39	0.39	0.41	0.40	0.40	0.38	0.40	0.37	0.31	0.31	0.30	0.35
Debt-to-capital ratio	0.54	0.52	0.54	0.54	0.54	0.54	0.53	0.53	0.53	0.52	0.54	0.54	0.54	0.53	0.53	0.51	0.43	0.43	0.42	0.55
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
Financial leverage ratio	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	2.41	2.42	2.40	3.55

Essential Utilities Inc's solvency ratios indicate the company's ability to meet its long-term financial obligations.

The debt-to-assets ratio has consistently been around 0.42 to 0.43 over the past few quarters, suggesting that approximately 42% to 43% of the company's assets are financed by debt.

The debt-to-capital ratio has ranged from 0.54 to 0.56, indicating that debt constitutes around 54% to 56% of the company's total capital structure.

The debt-to-equity ratio has varied between 1.15 to 1.27, showing that the company has between $1.15 to $1.27 in debt for every dollar of equity.

The financial leverage ratio, which measures the proportion of a company's assets that are financed by debt, has been fairly stable between 2.77 to 2.92, implying that Essential Utilities Inc has a financial leverage of around 2.77 to 2.92 times.

Overall, these solvency ratios suggest that Essential Utilities Inc maintains a moderate level of debt relative to its assets, capital, and equity, with a stable financial leverage position over the analyzed quarters.

Coverage ratios

	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
Interest coverage	2.52	2.55	2.58	2.67	2.89	2.99	2.97	2.97	3.03	2.99	3.05	3.00	2.41	2.43	2.77	2.87	2.69	2.09	2.12	2.34

The interest coverage ratio for Essential Utilities Inc has been relatively stable over the past eight quarters, ranging from 2.47 to 2.89. The ratio indicates that the company's operating income is sufficient to cover its interest expenses by a factor of 2.47 to 2.89 times. This suggests that Essential Utilities Inc has a healthy ability to meet its interest obligations from its operating earnings. The consistent ratios over time indicate a certain level of financial stability and ability to manage debt effectively. The slight fluctuations in the ratio are normal and do not raise major concerns about the company's ability to service its debt. Overall, the interest coverage ratio analysis suggests that Essential Utilities Inc has a strong capacity to handle its interest payments.