California Water Service Group (California Water Service Group) Interest Coverage

: 1.24 (As of Dec. 2023)

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Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. California Water Service Group's Operating Income for the three months ended in Dec. 2023 was $15.3 Mil. California Water Service Group's Interest Expense for the three months ended in Dec. 2023 was $-12.3 Mil. California Water Service Group's interest coverage for the quarter that ended in Dec. 2023 was 1.24. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for California Water Service Group's Interest Coverage or its related term are showing as below:

CWT' s Interest Coverage Range Over the Past 10 Years
Min: 1.39 Med: 3.52 Max: 4.31
Current: 1.39

CWT's Interest Coverage is ranked worse than
87.5% of 440 companies
in the Utilities - Regulated industry
Industry Median: 3.69 vs CWT: 1.39

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

California Water Service Group Interest Coverage Historical Data

The historical data trend for California Water Service Group's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

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California Water Service Group Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

2.94

3.61

3.07

3.06

1.39

California Water Service Group Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage																1.42	-	1.63	4.04	1.24

Competitive Comparison

For the Utilities - Regulated Water subindustry, California Water Service Group's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

California Water Service Group Interest Coverage Distribution

For the Utilities - Regulated industry and Utilities sector, California Water Service Group's Interest Coverage distribution charts can be found below:

* The bar in red indicates where California Water Service Group's Interest Coverage falls into.

California Water Service Group Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

California Water Service Group's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, California Water Service Group's Interest Expense was $-49.8 Mil. Its Operating Income was $69.2 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,052.8 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	69.184	/	-49.819
	=	1.39

California Water Service Group's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, California Water Service Group's Interest Expense was $-12.3 Mil. Its Operating Income was $15.3 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,052.8 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	15.276	/	-12.342
	=	1.24

The higher the ratio, the stronger the company's Financial Strength is.

California Water Service Group (NYSE:CWT) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

California Water Service Group Interest Coverage Related Terms

Thank you for viewing the detailed overview of California Water Service Group's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

California Water Service Group (California Water Service Group) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Regulated » California Water Service Group (NYSE:CWT) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

WT5:Germany

Address

1720 North First Street, San Jose, CA, USA, 95112

Website

https://www.calwatergroup.com

California Water Service Group is a U.S. water and utilities holding company based in California. The company engages in the production, treatment, storage, distribution, and sale of water for various uses. The firm operates through its subsidiaries, which can be divided between regulated and unregulated businesses. The regulated public utilities subsidiaries operate in California, New Mexico, Washington, and Hawaii. The unregulated subsidiaries provide water utility services to private companies and municipalities. The company derives the majority of its revenue from its operations in California and, overall, from residential customers.

Executives

Thomas M Krummel	director	C/O CALIFORNIA WATER SERVICE GROUP, 1720 N. FIRST STREET, SAN JOSE CA 95118
Michelle R Mortensen	officer: Corporate Secretary	1720 NORTH FIRST STREET, SAN JOSE CA 95112
Jeffrey Kightlinger	director	1720 NORTH FIRST STREET, SAN JOSE CA 95112
Charles R. Patton	director	1 RIVERSIDE PLAZA, COLUMBUS OH 43215
David B Healey	officer: VP, CEO and Treasurer	C/O CALIFORNIA WATER SERVICE COMPANY, 1720 NORTH FIRST STREET, SAN JOSE CA 95112
Robert J Kuta	officer: VP, Engineering	1720 NORTH FIRST STREET, SAN JOSE CA 95112
Shelly Marian Esque	director	1720 NORTH FIRST STREET, SAN JOSE CA 95112
Yvonne Aida Maldonado	director	1720 NORTH FIRST STREET, SAN JOSE CA 95112
Carol M Pottenger	director	1720 NORTH FIRST STREET, SAN JOSE CA 95020
Gregory E Aliff	director	1720 NORTH FIRST STREET, SAN JOSE CA 95112
Peter C Nelson	director	C/O CALIFORNIA WATER SERVICE GROUP, 1720 NORTH FIRST STREET, SAN JOSE CA 95112
Lester A Snow	director	C/O CALIFORNIA WATER SERVICE GROUP, 1720 N FIRST STREET, SAN JOSE CA 95112
Patricia K Wagner	director	1720 NORTH FIRST STREET, SAN JOSE CA 95020
Scott L Morris	director	1411 E MISSION AVE, SPOKANE WA 99202
Shawn C Bunting	officer: VP Corporate Council	1720 NORTH FIRST STREET, SAN JOSE CA 95112