DT Midstream Inc (DTM)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Long-term debt | US$ in thousands | 3,065,000 | 3,059,000 | 3,036,000 |
| Total assets | US$ in thousands | 8,982,000 | 8,833,000 | 8,166,000 |
| Debt-to-assets ratio | 0.34 | 0.35 | 0.37 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $3,065,000K ÷ $8,982,000K
= 0.34
The debt-to-assets ratio of DT Midstream Inc has shown some fluctuation over the past four years. The ratio decreased from 0.38 in 2020 to 0.37 in 2021, but then increased slightly to 0.38 in 2022 and 0.36 in 2023.
A decreasing debt-to-assets ratio generally indicates that the company is relying less on debt financing and has a stronger asset base relative to its debt obligations. Conversely, an increasing ratio may suggest a higher debt burden relative to its assets.
In the case of DT Midstream Inc, the recent decrease in the debt-to-assets ratio from 0.38 in 2022 to 0.36 in 2023 indicates a positive trend in managing debt levels in relation to its total assets. This could signify improved financial stability and reduced financial risk for the company. However, further analysis and monitoring of this ratio in conjunction with other financial metrics are recommended to assess the company's overall financial health and sustainability.
Peer comparison
Dec 31, 2023