Black Hills Corporation (BKH)

Debt-to-assets ratio

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Long-term debt	US$ in thousands	3,801,200	3,799,510	3,955,740	3,954,410	3,607,300	4,131,030	4,129,660	4,128,290	4,126,920	4,125,570	3,530,220	3,529,160	3,528,100	3,526,890	3,532,890	3,136,890	3,140,100	3,049,240	3,049,670	2,950,300
Total assets	US$ in thousands	9,620,400	9,932,930	9,409,100	9,460,140	9,618,200	9,322,290	9,134,560	9,130,650	9,131,900	8,910,390	8,738,050	8,696,200	8,088,790	7,829,050	7,689,930	7,648,810	7,558,460	7,274,950	7,081,450	7,037,570
Debt-to-assets ratio		0.40	0.38	0.42	0.42	0.38	0.44	0.45	0.45	0.45	0.46	0.40	0.41	0.44	0.45	0.46	0.41	0.42	0.42	0.43	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 fluctuations over the past eight quarters. The ratio ranged from 0.46 to 0.50 during this period.

Overall, the trend indicates that the company has been maintaining a relatively stable level of indebtedness relative to its total assets. A ratio of around 0.50 suggests that approximately half of Black Hills Corporation's assets are financed by debt.

While the variations in the ratio are relatively small, it is worth noting that a lower ratio indicates a lower level of financial risk, as it implies less reliance on debt financing. On the other hand, a higher ratio could signify a greater financial leverage and potential risk in case of economic downturns or increased interest rates.

In conclusion, the debt-to-assets ratio of Black Hills Corporation has been hovering around 0.50, reflecting a moderate level of debt utilization to fund its operations and investments. However, it is important for the company to monitor and manage its debt levels to maintain a healthy balance between debt and equity in its capital structure.