IDACORP Inc (IDA)

Debt-to-equity ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	2,775,790	2,194,140	2,000,640	2,000,410	1,736,660
Total stockholders’ equity	US$ in thousands	2,907,570	2,807,240	2,668,440	2,559,980	2,464,630
Debt-to-equity ratio		0.95	0.78	0.75	0.78	0.70

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $2,775,790K ÷ $2,907,570K
= 0.95

The debt-to-equity ratio measures the proportion of a company's total debt to its total equity, indicating the level of financial leverage and risk. For Idacorp, Inc., the trend of the debt-to-equity ratio over the past five years shows a fluctuating pattern.

In 2023, the debt-to-equity ratio increased to 0.97 from 0.78 in 2022, indicating a higher level of debt relative to equity. This increase in the ratio may suggest that the company has taken on more debt compared to its equity position, potentially increasing financial risk.

Comparing 2023's ratio with earlier years, such as 2021 and 2019, where the ratio was at 0.75, the recent increase indicates a shift towards higher leverage. This could imply that Idacorp, Inc. has been utilizing more debt financing as a source of capital, which may lead to higher interest payments and financial obligations.

It is essential for investors and stakeholders to monitor the trend of the debt-to-equity ratio over time, as a consistently high ratio could signal increased financial risk and potential challenges in servicing debt obligations. Additionally, a rising debt-to-equity ratio may impact the company's ability to access additional financing or affect its credit rating.