IDACORP Inc (IDA)

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	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Total assets	US$ in thousands	8,475,920	8,293,530	7,839,070	7,878,890	7,543,260	7,523,940	7,452,100	7,284,560	7,210,520	7,254,050	7,201,460	7,078,300	7,095,240	6,930,160	7,020,530	6,609,950	6,641,200	6,502,320	6,460,850	6,387,820
Total stockholders’ equity	US$ in thousands	2,907,570	2,920,890	2,853,760	2,823,060	2,807,240	2,778,300	2,706,810	2,677,510	2,668,440	2,670,610	2,606,410	2,569,420	2,559,980	2,565,990	2,495,800	2,467,380	2,464,630	2,464,120	2,403,800	2,380,240
Financial leverage ratio		2.92	2.84	2.75	2.79	2.69	2.71	2.75	2.72	2.70	2.72	2.76	2.75	2.77	2.70	2.81	2.68	2.69	2.64	2.69	2.68

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $8,475,920K ÷ $2,907,570K
= 2.92

The financial leverage ratio of Idacorp, Inc. has shown a fluctuating trend over the past eight quarters. The ratio ranged from a low of 2.69 in Q4 2022 to a high of 2.92 in Q4 2023, indicating varying levels of leverage during this period.

A financial leverage ratio above 1 suggests that the company relies more on debt financing than equity financing. Idacorp's ratios consistently above 2 indicate a relatively high proportion of debt in its capital structure compared to equity.

The increase in the financial leverage ratio from 2.69 in Q4 2022 to 2.92 in Q4 2023 suggests a potential increase in the company's reliance on debt financing during this period. This could be a strategic decision to take advantage of favorable interest rates or to fund growth opportunities.

It is essential for stakeholders to closely monitor Idacorp's financial leverage ratio to assess the company's ability to meet its financial obligations, manage financial risks, and maintain a healthy balance between debt and equity in its capital structure.