Black Hills Corporation (BKH)

The solvency ratios of Black Hills Corporation, as indicated by the provided data, reflect the company's ability to meet its long-term financial obligations and the extent of its leverage.

1. Debt-to-assets ratio:
- The debt-to-assets ratio shows the proportion of the company's assets that are financed by debt. Black Hills Corporation's debt-to-assets ratio has remained relatively stable over the years, ranging from 0.38 to 0.45. This suggests that, on average, approximately 38% to 45% of the company's assets are funded by debt.

2. Debt-to-capital ratio:
- The debt-to-capital ratio indicates the proportion of the company's capital structure that is comprised of debt. Black Hills Corporation's debt-to-capital ratio has also shown consistency, varying between 0.54 to 0.60. This implies that debt accounts for around 54% to 60% of the company's total capital.

3. Debt-to-equity ratio:
- The debt-to-equity ratio reveals the extent to which the company's operations are funded by debt relative to shareholders' equity. While there has been some fluctuation, the debt-to-equity ratio for Black Hills Corporation has generally stayed within the range of 1.18 to 1.48. This indicates that the company relies on debt for approximately 118% to 148% of its equity financing.

4. Financial leverage ratio:
- The financial leverage ratio measures the company's total assets relative to its equity, indicating the degree of financial leverage employed. Black Hills Corporation's financial leverage ratio has decreased over the years, moving from 3.16 to 2.86. This trend suggests a reduction in the company's reliance on debt financing and a strengthening of its equity position.

In summary, Black Hills Corporation's solvency ratios demonstrate a consistent level of debt utilization to finance its operations, with a slight decline in financial leverage in recent years, reflecting a potentially improved financial position and reduced risk of insolvency.

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Coverage ratios

The interest coverage ratio for Black Hills Corporation has remained fairly consistent over the past five years, ranging from 2.60 to 2.82. This indicates that the company's earnings before interest and taxes (EBIT) are sufficient to cover its interest expenses. While a ratio above 1.0 typically indicates that the company is generating enough operating income to meet its interest obligations, a higher ratio provides more comfort to lenders and investors.

Although the slight fluctuations in the interest coverage ratio suggest a stable ability to meet interest payments, it may be worth monitoring any future trends to ensure the company's financial health and ability to service its debt obligations. It is also essential to consider other factors, such as overall debt levels and the company's operational performance, in conjunction with the interest coverage ratio for a comprehensive assessment of Black Hills Corporation's financial position.