Black Hills Corporation (BKH)

Solvency ratios

	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
Debt-to-assets ratio	0.40	0.38	0.42	0.42	0.38	0.44	0.45	0.45	0.45	0.46	0.40	0.41	0.44	0.45	0.46	0.41	0.42	0.42	0.43	0.42
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
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
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

Based on the solvency ratios of Black Hills Corporation over the past eight quarters, we can observe the following trends:

1. Debt-to-assets ratio: The company's debt-to-assets ratio has generally remained relatively stable, fluctuating between 0.46 and 0.50. This indicates that Black Hills Corporation finances a significant portion of its assets through debt, with around 46% to 50% of its assets being funded by debt on average.

2. Debt-to-capital ratio: Similarly, the debt-to-capital ratio has shown a consistent trend, hovering between 0.58 and 0.61. This ratio reflects the proportion of the company's capital structure that is comprised of debt, with values indicating that approximately 58% to 61% of the capital is funded by debt.

3. Debt-to-equity ratio: The debt-to-equity ratio of Black Hills Corporation has displayed some variability over the quarters, ranging from 1.37 to 1.60. This ratio signifies the extent to which the company relies on debt versus equity to finance its operations, with figures illustrating that the company has maintained a debt-heavy capital structure.

4. Financial leverage ratio: The financial leverage ratio, which measures the company's total assets relative to its equity, has exhibited a consistent pattern, fluctuating between 2.99 and 3.23. This ratio suggests that Black Hills Corporation employs a significant amount of debt to support its operations, with financial leverage averaging around 3x over the period.

Overall, the solvency ratios indicate that Black Hills Corporation has consistently maintained a relatively high level of debt in its capital structure, relying predominantly on debt financing to support its operations and investments. Investors and stakeholders may need to closely monitor the company's ability to service its debt obligations and manage its leverage levels effectively to ensure long-term financial stability.

Coverage ratios

	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
Interest coverage	2.82	2.67	2.63	2.75	2.83	2.82	2.92	2.90	2.69	2.80	2.79	2.84	2.99	3.08	3.00	2.90	2.95	2.83	2.79	2.91

The interest coverage ratio for Black Hills Corporation has been relatively stable over the past eight quarters, ranging from 2.65 to 2.92. This indicates that the company's ability to meet its interest obligations with its earnings has been consistent. An interest coverage ratio above 1 indicates that the company generates enough income to cover its interest expenses.

The slight fluctuations in the interest coverage ratio over the quarters suggest that Black Hills Corporation has been managing its interest payments effectively. A consistent interest coverage ratio is a positive sign for investors and creditors as it shows the company's financial stability and ability to handle debt obligations. However, it is essential for the company to maintain this ratio at a healthy level in the long term to ensure sustainable financial health.