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