Black Hills Corporation (BKH)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	3,215,300	2,994,900	2,787,090	2,561,380	2,362,120
Debt-to-capital ratio		0.54	0.55	0.60	0.58	0.57

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $3,801,200K ÷ ($3,801,200K + $3,215,300K)
= 0.54

The debt-to-capital ratio of Black Hills Corporation has exhibited a slight decreasing trend over the past five years, from 0.60 in 2019 to 0.58 in 2023. This indicates a gradual improvement in the company's capital structure as a lower ratio implies a lower dependence on debt financing compared to equity.

Although there was a temporary increase in the ratio in 2021, reaching 0.62, the subsequent years showed a downward trend, reflecting a potential shift towards a more balanced mix of debt and equity in the company's capital structure.

Overall, the decreasing trend in the debt-to-capital ratio suggests that Black Hills Corporation has been managing its debt levels effectively relative to its capital base. However, further analysis taking into consideration industry norms and the company's overall financial health would provide a more comprehensive assessment of the company's leverage position.