DT Midstream Inc (DTM)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 4,139,000 | 4,007,000 | 3,872,000 |
| Debt-to-capital ratio | 0.43 | 0.43 | 0.44 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $3,065,000K ÷ ($3,065,000K + $4,139,000K)
= 0.43
The debt-to-capital ratio of DT Midstream Inc has shown consistency in the range of 0.44 to 0.46 over the past four years, indicating a relatively stable capital structure. This ratio suggests that, on average, around 44% to 46% of the company's capital is attributed to debt, while the remainder is from equity.
A debt-to-capital ratio below 0.50 generally implies that the company has a conservative level of debt relative to its total capital, which can be viewed positively by investors and creditors as it signifies lower financial risk. DT Midstream Inc's consistent ratio over the years indicates a balanced approach to financing its operations through a mix of debt and equity capital. Hence, the company appears to have a prudent capital structure that is not overly leveraged.
Peer comparison
Dec 31, 2023