DT Midstream Inc (DTM)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 9,935,000 | 8,982,000 | 8,833,000 | 8,166,000 | 8,342,000 |
| Total stockholders’ equity | US$ in thousands | 4,627,000 | 4,139,000 | 4,007,000 | 3,872,000 | 4,073,000 |
| Financial leverage ratio | 2.15 | 2.17 | 2.20 | 2.11 | 2.05 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $9,935,000K ÷ $4,627,000K
= 2.15
The financial leverage ratio of DT Midstream Inc has been consistently increasing over the past five years. It was 2.05 as of December 31, 2020, and has gradually risen to 2.15 by December 31, 2024. This indicates that the company's reliance on debt to finance its operations has been on the rise. A higher financial leverage ratio suggests that a larger portion of the company's assets are funded by debt rather than equity. DT Midstream Inc's increasing leverage ratio may indicate a strategy to take advantage of low interest rates or seek growth opportunities, but it also implies higher financial risk due to the higher debt levels. Investors and creditors should closely monitor this trend to assess the company's ability to manage its debt obligations effectively.
Peer comparison
Dec 31, 2024