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American Water Works Company, Inc. (AWK)
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American Water Works Company, Inc. (AWK) Interest Coverage Ratio: 3.06x

The interest coverage ratio for American Water Works Company, Inc. (AWK) is 3.06x as of Monday, June 15, 2026.

AWK Interest Coverage Ratio Metrics

INTEREST COVERAGE RATIO

3.06x

AWK Competitors' Interest Coverage Ratio

NAMEMARKET CAPINTEREST COVERAGE RATIOTTM3Y5Y
American Water Works Company, Inc. (AWK)$24.67B3.06xN/AN/AN/A
CMS Energy Corporation (CMS)vs ›$22.73B2.19x2.15x2.14x2.22x
FirstEnergy Corp. (FE)vs ›$27.20B2.49x2.42x2.26x2.14x
CenterPoint Energy, Inc. (CNP)vs ›$28.06B2.34x2.35x2.55x2.46x
Atmos Energy Corporation (ATO)vs ›$28.37B9.09x8.10x8.23x8.92x
Alliant Energy Corporation (LNT)vs ›$18.88B2.00x1.98x2.30x2.43x
Talen Energy Corporation (TLN)vs ›$16.47B-0.24x0.60x0.62x0.62x
WEC Energy Group, Inc. (WEC)vs ›$36.95B2.65x2.65x2.91x3.13x
Consolidated Edison, Inc. (ED)vs ›$39.71B2.38x2.34x2.42x2.56x
Public Service Enterprise Group Incorporated (PEG)vs ›$39.72B2.97x2.88x3.40x3.60x

Financial Health Indicators

Interest Coverage

3.1x

Debt/Equity

1.47

Current Ratio

0.46

Formula: Interest Coverage = EBIT / Interest Expense

Reference ranges:

  • < 1.5x: EBIT is less than 1.5 times interest expense
  • 1.5x - 3x: EBIT is between 1.5 and 3 times interest expense
  • 3x - 5x: EBIT is between 3 and 5 times interest expense
  • > 5x: EBIT is more than 5 times interest expense

Note: Interest coverage should be compared with historical interest expense, operating income, and industry capital structure.

American Water Works Company, Inc. Interest Coverage Ratio Formula & Definition

Interest Coverage = EBIT / Interest Expense

The interest coverage ratio measures operating earnings relative to interest expense.

Expanded definitions: Investopedia, Wikipedia, Corporate Finance Institute

American Water Works Company, Inc. Interest Coverage Ratio FAQ

What is the interest coverage ratio for American Water Works Company, Inc. (AWK)?
The interest coverage ratio for AWK stock is 3.06x.

About American Water Works Company, Inc.

American Water Works Company, Inc. operates across the United States, delivering essential water and wastewater solutions via its various subsidiary companies. Its operations extend to around 1,700 communities situated across 14 states, catering to an active customer base of roughly 3.4 million. The firm caters to a broad spectrum of clients. These include individual households, commercial enterprises (such as food and beverage suppliers, property developers, and energy companies), and both public and private fire service customers. Industrial clients, like large-scale manufacturers, mining, and production facilities, also utilize its services. Furthermore, American Water Works supports public authorities, encompassing government facilities, schools, and universities, alongside other utility providers and community water and wastewater infrastructure. Beyond these, the company extends its water and wastewater provisions to numerous military installations. It also enters into agreements with municipal bodies, predominantly for the management and operation of their water and wastewater facilities, in addition to offering a range of supplementary services. The company's infrastructure is substantial, comprising approximately 80 surface water treatment plants, 480 groundwater treatment plants, and 160 wastewater treatment plants. Its vast network also includes 52,500 miles of mains for transmission, distribution, and collection, alongside 1,100 groundwater wells, 1,700 pumping stations for water and wastewater, 1,300 treated water storage facilities, and 76 dams. Overall, the company delivers drinking water, wastewater management, and ancillary services to roughly 14 million individuals across 24 states. Established in 1886, American Water Works Company, Inc. maintains its headquarters in Camden, New Jersey.

Camden, NJ
6,700 employees
Utilities / Regulated Water
Sector
Utilities
Industry
Regulated Water
CEO
John C. Griffith