Black Hills Corporation (BKH)

Debt-to-assets ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	3,801,200	3,607,300	4,126,920	3,528,100	3,140,100
Total assets	US$ in thousands	9,620,400	9,618,200	9,131,900	8,088,790	7,558,460
Debt-to-assets ratio		0.40	0.38	0.45	0.44	0.42

December 31, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $3,801,200K ÷ $9,620,400K
= 0.40

The debt-to-assets ratio of Black Hills Corporation has shown some fluctuation over the past five years. As of December 31, 2023, the ratio stands at 0.46, indicating that 46% of the company's assets are financed by debt.

Comparing this to the previous years, we observe that the ratio was slightly higher in 2022 at 0.49 and even higher in 2021 at 0.50. However, it decreased to 0.47 in 2020 before returning to the 2023 level of 0.46 in 2019.

Overall, the trend suggests that Black Hills Corporation has been maintaining a relatively stable debt-to-assets ratio in recent years, indicating a prudent level of debt utilization to finance its assets. It is essential to monitor this ratio over time to ensure the company's financial health and ability to meet its debt obligations.