DT Midstream Inc (DTM)

Solvency ratios

	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022
Debt-to-assets ratio	0.34	0.35	0.35	0.34	0.35	0.36	0.37	0.37	0.37	0.37	0.38
Debt-to-capital ratio	0.43	0.43	0.43	0.43	0.43	0.43	0.44	0.44	0.44	0.44	0.44
Debt-to-equity ratio	0.74	0.75	0.76	0.76	0.76	0.77	0.78	0.78	0.78	0.79	0.79
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

The solvency ratios of DT Midstream Inc indicate the company's ability to meet its long-term financial obligations.

The Debt-to-assets ratio has been relatively stable around 0.36, implying that 36% of the company's assets are financed by debt. This suggests that the company has a solid asset base to cover its debt obligations.

The Debt-to-capital ratio has also been consistent at around 0.44, revealing that 44% of the company's capital structure is made up of debt. This indicates a balanced mix of debt and equity financing.

The Debt-to-equity ratio has remained steady at approximately 0.78, indicating that the company relies more on debt than equity to finance its operations. While this ratio is relatively high, it is consistent, suggesting a sustainable debt-to-equity structure.

The Financial leverage ratio has fluctuated slightly but has generally been around 2.15 to 2.23, indicating that the company's assets are leveraged at around 2 times its equity. This suggests that the company is utilizing debt to finance its assets, which can amplify returns but also increase financial risk.

Overall, based on these solvency ratios, DT Midstream Inc appears to have a reasonable level of debt relative to its assets, capital, and equity, with a consistent and manageable leverage position.

Coverage ratios

	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022
Interest coverage	4.25	4.26	4.29	4.36	4.43	4.55	4.53	4.50

The interest coverage ratio for DT Midstream Inc has remained relatively stable over the past eight quarters, ranging from 4.32 to 4.78. This indicates that the company's ability to cover its interest expenses with its earnings has been consistently strong. A ratio above 1 generally suggests that the company is generating enough earnings to cover its interest obligations. DT Midstream Inc's consistent interest coverage above 4 indicates a healthy financial position and the company's ability to comfortably meet its interest payments. This stable and relatively high interest coverage ratio is a positive indicator of the company's financial health and ability to manage its debt obligations effectively.