The debt-to-capital ratio is a vital indicator of the financial position of a company. It shows the amount of debt used to run a business. Currently, California Water Service and York Water have a debt-to-capital of 48.11% and 48.22%, respectively, compared with the industry's 50.04%. The times interest earned ratio, if more than one, indicates that the company has enough financial flexibility to meet its near-term interest obligations. CWT and YORW have times interest earned ratio of 2.9 and 3.1, respectively.