Black Hills Corporation (BKH)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 9,620,400 | 9,932,930 | 9,409,100 | 9,460,140 | 9,618,200 | 9,322,290 | 9,134,560 | 9,130,650 | 9,131,900 | 8,910,390 | 8,738,050 | 8,696,200 | 8,088,790 | 7,829,050 | 7,689,930 | 7,648,810 | 7,558,460 | 7,274,950 | 7,081,450 | 7,037,570 |
| 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 |
| Financial leverage ratio | 2.99 | 3.14 | 3.03 | 3.05 | 3.21 | 3.23 | 3.17 | 3.18 | 3.28 | 3.30 | 3.29 | 3.31 | 3.16 | 3.11 | 3.06 | 3.03 | 3.20 | 3.12 | 3.06 | 3.09 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $9,620,400K ÷ $3,215,300K
= 2.99
The financial leverage ratio of Black Hills Corporation has exhibited some variability in recent quarters. The ratio measures how much the company relies on debt to finance its operations and growth.
From Q4 2022 to Q3 2023, the financial leverage ratio fluctuated between 3.17 and 3.14, showing a slight decrease before trending upward again. This indicates that the company has been consistently relying on debt to a relatively high degree during this period.
Although the ratio dropped to 2.99 in Q4 2023, it is still higher than it was in the previous quarters. This suggests that Black Hills Corporation may have increased its debt levels or used leverage to fund its activities in the most recent quarter.
Overall, the trend of the financial leverage ratio indicates that Black Hills Corporation has been maintaining a relatively high level of financial leverage, which can potentially magnify returns on equity but also increases the company's financial risk. It would be prudent for stakeholders to closely monitor the company's debt levels and its ability to manage debt obligations effectively.
Peer comparison
Dec 31, 2023