8-KOther EventsExhibits & Filings

American Water Works Company, Inc. 8-K Report, Corporate Update (Aug 11, 2014)

Filed August 11, 2014For Securities:AWK

Summary

This Form 8-K filing from American Water Works Company, Inc. (AWK) on August 11, 2014, primarily serves to attach an exhibit detailing the company's "Computation of Ratio of Earnings to Fixed Charges and Preferred Stock Dividends." This information is provided for the fiscal years ending December 31, 2009, through 2013, and for the six-month period ending June 30, 2014. While not a major operational or strategic announcement, the ratio of earnings to fixed charges is a key financial metric for investors to assess a company's ability to cover its debt obligations and preferred stock dividends from its earnings. Investors should review this exhibit to understand AWK's financial health and its capacity to meet its financial commitments. A healthy and stable ratio suggests lower financial risk, while a declining or low ratio could indicate increased financial leverage and potential risk. This filing provides historical data points that can be used for trend analysis and comparison against industry peers.

Key Highlights

  • 1Filing reports the Computation of Ratio of Earnings to Fixed Charges and Preferred Stock Dividends for AWK and American Water Capital Corp.
  • 2The reported periods include fiscal years 2009, 2010, 2011, 2012, 2013, and the six months ended June 30, 2014.
  • 3This data is crucial for assessing the company's ability to cover its debt service and preferred dividend requirements.
  • 4The filing is an 8-K, indicating a material event or change, in this case, the disclosure of this specific financial ratio computation.
  • 5The Senior Vice President and Chief Financial Officer signed the report, indicating official company confirmation of the presented financial data.
  • 6Exhibit 12.1 contains the detailed calculations for the aforementioned ratio.

Frequently Asked Questions

The Ratio of Earnings to Fixed Charges is a financial metric that measures a company's ability to cover its fixed financial obligations, such as interest expenses on debt and preferred stock dividends, with its earnings. A higher ratio indicates a greater ability to meet these obligations, suggesting lower financial risk for investors. Conversely, a lower ratio can signal potential financial strain.

This filing covers the computation of the ratios for the fiscal years ended December 31, 2009, December 31, 2010, December 31, 2011, December 31, 2012, and December 31, 2013, as well as the six-month period ended June 30, 2014.

This particular 8-K filing is primarily informational, providing the calculation of existing financial ratios. It does not, by itself, indicate new debt issuance or significant financial changes. However, investors should use this data in conjunction with other company announcements and financial reports to assess the company's overall financial health and leverage.

The detailed calculations for the Ratio of Earnings to Fixed Charges and Preferred Stock Dividends are provided in Exhibit 12.1, which is incorporated by reference into this Form 8-K filing.