DT Midstream Inc (DTM)

Financial leverage ratio

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
Total assets US$ in thousands 8,982,000 8,862,000 8,726,000 8,981,000 8,833,000 8,419,000 8,290,000 8,211,000 8,166,000 8,127,000 7,990,000
Total stockholders’ equity US$ in thousands 4,139,000 4,079,000 4,052,000 4,023,000 4,007,000 3,978,000 3,923,000 3,890,000 3,872,000 3,839,000 3,830,000
Financial leverage ratio 2.17 2.17 2.15 2.23 2.20 2.12 2.11 2.11 2.11 2.12 2.09

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $8,982,000K ÷ $4,139,000K
= 2.17

DT Midstream Inc's financial leverage ratio has been relatively stable over the past 8 quarters, ranging from 2.11 to 2.23. The ratio indicates that the company is relying more on debt financing rather than equity to fund its operations and investments, with a higher ratio suggesting higher financial leverage.

The consistent range of the financial leverage ratio could imply that the company has a steady capital structure and is maintaining a certain level of debt to fund its growth and operations. However, a ratio above 2 indicates that the company's debt levels are more than twice its equity levels, which could pose a higher risk in terms of repayment obligations and financial stability.

It is important for DT Midstream Inc to carefully manage its debt levels and monitor its financial leverage ratio to ensure it remains at an optimal level that balances the benefits of debt financing with the risks associated with higher leverage. This analysis highlights the company's ongoing need to evaluate its capital structure and debt management strategies to support sustainable growth and profitability.


Peer comparison

Dec 31, 2023