DT Midstream Inc (DTM)
Debt-to-equity 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-equity ratio | 0.74 | 0.76 | 0.78 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $3,065,000K ÷ $4,139,000K
= 0.74
The debt-to-equity ratio of DT Midstream Inc has shown a fluctuating trend over the past four years. The ratio decreased from 0.85 in 2022 to 0.79 in 2021 and then increased to 0.78 in both 2020 and 2023.
A debt-to-equity ratio of 0.78 in 2023 indicates that the company has $0.78 in debt for every $1 of equity. This suggests that DT Midstream Inc is relying more on equity financing than debt financing to support its operations and growth strategies.
Overall, the stable nature of the company's debt-to-equity ratio over the years indicates a balanced capital structure, with a moderate level of debt relative to equity. However, it is crucial for the company to continue monitoring and managing its debt levels effectively to maintain financial stability and sustainable growth in the future.
Peer comparison
Dec 31, 2023