Black Hills Corporation (BKH)

Debt-to-equity 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-equity ratio		1.18	1.20	1.48	1.38	1.33

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $3,801,200K ÷ $3,215,300K
= 1.18

The debt-to-equity ratio of Black Hills Corporation has exhibited a fluctuating trend over the past five years. From 2019 to 2020, the ratio remained relatively stable at around 1.48, indicating that the company's debt level was approximately equal to its equity. In 2021, there was a notable increase in the ratio to 1.63, suggesting a higher proportion of debt relative to equity in the company's capital structure.

However, in 2022, the ratio further increased to 1.56, which may have raised concerns about the company's increasing reliance on debt financing. This trend reversed in 2023, with the ratio declining to 1.37, indicating a lower level of debt in relation to equity compared to the previous year.

Overall, the varying debt-to-equity ratios imply that Black Hills Corporation has been actively managing its capital structure by adjusting its debt and equity levels over the years to maintain a balance between financial risk and operational stability. Further analysis of the reasons behind these fluctuations and their impact on the company's financial health would be necessary to provide a more insightful assessment.