Black Hills Corporation (BKH)

Debt-to-equity 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-equity ratio		1.18	1.20	1.27	1.28	1.20	1.43	1.43	1.44	1.48	1.53	1.33	1.34	1.38	1.40	1.41	1.24	1.33	1.31	1.32	1.29

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 shown fluctuations over the past eight quarters, ranging from 1.37 to 1.60. A higher debt-to-equity ratio typically indicates that a company has been financing its growth through debt rather than equity.

In the most recent quarter, Q4 2023, the debt-to-equity ratio decreased to 1.37, suggesting a reduction in the proportion of debt relative to equity in the company's capital structure. This could indicate improved financial stability and lower financial risk for Black Hills Corporation.

However, it's important to note that the company previously had higher debt-to-equity ratios, reaching as high as 1.60 in Q3 2022. While the current decrease is a positive sign, it would be prudent to continue monitoring the trend to ensure sustainable financial health and adequate capital structure management.

Overall, the fluctuating debt-to-equity ratio of Black Hills Corporation suggests varying levels of leverage and capital structure decisions over the quarters, highlighting the importance of ongoing financial analysis and monitoring.