Black Hills Corporation (BKH)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	3,215,300	3,167,320	3,110,020	3,097,950	2,994,900	2,886,620	2,885,450	2,871,920	2,787,090	2,697,520	2,659,040	2,624,510	2,561,380	2,519,050	2,513,290	2,523,170	2,362,120	2,329,480	2,316,750	2,279,160
Debt-to-capital ratio		0.54	0.55	0.56	0.56	0.55	0.59	0.59	0.59	0.60	0.60	0.57	0.57	0.58	0.58	0.58	0.55	0.57	0.57	0.57	0.56

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 shown some fluctuation over the past eight quarters, ranging from 0.58 to 0.62. This ratio indicates the proportion of the company's capital that is financed through debt.

On average, the company's debt makes up approximately 60% of its total capital structure. A decreasing trend in this ratio could signify a reduction in reliance on debt financing, while an increasing trend may suggest expanding debt obligations relative to capital.

Overall, given the relatively stable range of the debt-to-capital ratio around 0.60, Black Hills Corporation appears to maintain a balanced approach to capital structure, with a reasonable level of debt compared to equity. It would be important to consider additional financial metrics and factors to assess the company's overall financial health and leverage position.