Black Hills Corporation (BKH)

Debt-to-assets ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Long-term debt	US$ in thousands	4,250,200	3,801,200	3,607,300	4,126,920	3,528,100
Total assets	US$ in thousands	10,022,600	9,620,400	9,618,200	9,131,900	8,088,790
Debt-to-assets ratio		0.42	0.40	0.38	0.45	0.44

December 31, 2024 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $4,250,200K ÷ $10,022,600K
= 0.42

The debt-to-assets ratio of Black Hills Corporation has shown relatively stable trends over the past five years, ranging from 0.38 to 0.45. This ratio indicates that, on average, approximately 40-45% of the company's assets are financed through debt, while the remaining percentage is covered by equity. The slight fluctuations in the ratio suggest that the company has been managing its debt levels effectively, maintaining a healthy balance between debt and assets. Overall, a lower debt-to-assets ratio signifies lower financial risk and increased financial stability for Black Hills Corporation.