Black Hills Corporation (BKH)

Debt-to-equity 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 stockholders’ equity US$ in thousands 3,501,500 3,215,300 2,994,900 2,787,090 2,561,380
Debt-to-equity ratio 1.21 1.18 1.20 1.48 1.38

December 31, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $4,250,200K ÷ $3,501,500K
= 1.21

The debt-to-equity ratio of Black Hills Corporation has shown some fluctuations over the years. In 2020, the ratio stood at 1.38, indicating that the company had $1.38 in debt for every $1 of equity. By the end of 2021, the ratio increased to 1.48, suggesting a slightly higher reliance on debt compared to equity.

However, in 2022, there was a notable decrease in the ratio to 1.20, which could indicate a reduction in debt relative to equity, potentially improving the company's financial leverage. This trend continued into 2023, with the ratio further decreasing to 1.18, signaling a potential strengthening of the company's financial position.

By the end of 2024, the ratio increased slightly to 1.21, remaining relatively stable compared to the previous year. Overall, while there have been fluctuations in the debt-to-equity ratio of Black Hills Corporation, the general trend shows a potential improvement in the company's debt management and financial leverage over the years.