8-KOther EventsExhibits & Filings

American Water Works Company, Inc. 8-K Report, Corporate Update (Dec 3, 2010)

Filed December 3, 2010For Securities:AWK

Summary

This Form 8-K filing by American Water Works Company, Inc. (AWK) on December 3, 2010, primarily serves to disclose the company's and its subsidiary, American Water Capital Corp.'s, computations for the Ratio of Earnings to Fixed Charges and Preferred Stock Dividends. This information covers historical periods from fiscal year-end 2005 through 2009, and the nine-month period ending September 30, 2010. For investors, these ratios are crucial for assessing the company's ability to meet its debt obligations and dividend payments. A strong ratio indicates financial health and a lower risk profile, which can be reassuring for shareholders and debtholders. While this filing doesn't announce new strategic initiatives or significant operational changes, it provides important financial metrics that contribute to the overall understanding of AWK's financial stability and creditworthiness during the reported periods.

Key Highlights

  • 1Filing discloses the computation of the Ratio of Earnings to Fixed Charges for American Water Works Company, Inc. and American Water Capital Corp.
  • 2Filing also includes the computation for Preferred Stock Dividends for both entities.
  • 3The reporting periods covered are fiscal years 2005 through 2009, and the nine months ended September 30, 2010.
  • 4These financial metrics are important for assessing the company's ability to service its debt obligations.
  • 5The filing incorporates Exhibit 12.1, which contains the detailed computations.
  • 6The filing is categorized under 'Other Events' (Item 8.01).

Frequently Asked Questions

The main purpose of this 8-K filing is to provide investors and creditors with the company's and its subsidiary's calculations for the Ratio of Earnings to Fixed Charges and Preferred Stock Dividends for specific historical periods, enabling an assessment of the company's financial leverage and ability to meet its obligations.

These ratios are key indicators of a company's financial health. The Ratio of Earnings to Fixed Charges demonstrates how well a company's earnings cover its interest expenses and other fixed financial obligations. A higher ratio suggests a greater ability to service debt. The Preferred Stock Dividend calculation relates to the company's ability to pay dividends to its preferred shareholders.

No, this filing does not announce any new business operations, mergers, acquisitions, or significant changes in financial performance. Its primary function is to present specific, historical financial ratio calculations as required by SEC regulations.

The disclosed financial ratios, specifically the Ratio of Earnings to Fixed Charges and Preferred Stock Dividends, cover both American Water Works Company, Inc. (the parent company) and its subsidiary, American Water Capital Corp.