IDACORP Inc (IDA)

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 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
Debt-to-assets ratio 0.33 0.34 0.32 0.32 0.29 0.28 0.28 0.28 0.28 0.28 0.28 0.28 0.28 0.29 0.28 0.28 0.26 0.28 0.28 0.29
Debt-to-capital ratio 0.49 0.49 0.47 0.47 0.44 0.43 0.43 0.43 0.43 0.43 0.43 0.44 0.44 0.44 0.44 0.43 0.41 0.43 0.43 0.44
Debt-to-equity ratio 0.95 0.97 0.87 0.88 0.78 0.75 0.77 0.77 0.75 0.75 0.77 0.78 0.78 0.78 0.80 0.74 0.70 0.75 0.76 0.77
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

The solvency ratios for Idacorp, Inc. provide insight into the company's ability to meet its long-term financial obligations and the extent of financial leverage it employs.

The Debt-to-assets ratio has been relatively stable over the quarters, ranging between 0.29 and 0.34. This indicates that Idacorp relies on debt for approximately 29% to 34% of its total assets, with a higher ratio suggesting higher financial risk.

The Debt-to-capital ratio also reflects a consistent trend, hovering around 0.44 to 0.49. This ratio reveals that debt accounts for around 44% to 49% of Idacorp's total capital. A higher ratio signifies a larger proportion of debt financing in the company's capital structure.

The Debt-to-equity ratio shows a steady increase from 0.77 to 0.97 across the quarters, implying a rise in the proportion of debt relative to equity financing. This may indicate a higher financial risk as the company becomes more leveraged.

The Financial leverage ratio has fluctuated slightly but remained within a narrow range of 2.69 to 2.92. This metric indicates the extent to which Idacorp's operations are financed by debt as opposed to equity. A higher ratio signifies higher financial leverage or dependence on debt financing.

Overall, these solvency ratios suggest that Idacorp, Inc. has maintained a relatively stable but gradually increasing reliance on debt to fund its operations and investments, potentially indicating an evolving risk profile in its financial structure.

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 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
Interest coverage 2.69 3.12 3.37 3.58 3.66 3.67 3.67 3.80 3.80 3.95 4.07 4.00 4.04 4.10 4.02 3.95 3.98 3.76 3.76 3.91

Interest coverage is a financial ratio that indicates a company's ability to pay interest expenses on outstanding debt. It is calculated by dividing earnings before interest and taxes (EBIT) by the interest expense. A higher interest coverage ratio suggests that the company is more capable of servicing its interest obligations.

Looking at the data provided for Idacorp, Inc., we observe fluctuations in the interest coverage ratio over the past eight quarters. In Q4 2022, the interest coverage ratio was relatively high at 2.30, indicating a strong ability to cover interest payments. However, this ratio dipped in subsequent quarters, reaching a low of 1.96 in Q3 2023.

Overall, the trend in Idacorp's interest coverage ratio shows some variability but generally remains above 2 in most quarters. This suggests that the company has maintained a reasonable capacity to meet its interest obligations, although there may be some variability in its earnings or interest expenses. Investors and creditors may consider monitoring this ratio to ensure that Idacorp can continue to effectively manage its debt servicing requirements.