Kinder Morgan Inc (KMI)

Debt-to-capital ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Long-term debt	US$ in thousands	29,881,000	28,067,000	28,403,000	30,674,000	32,131,000
Total stockholders’ equity	US$ in thousands	30,531,000	30,306,000	30,742,000	30,823,000	31,436,000
Debt-to-capital ratio		0.49	0.48	0.48	0.50	0.51

December 31, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $29,881,000K ÷ ($29,881,000K + $30,531,000K)
= 0.49

The debt-to-capital ratio for Kinder Morgan Inc has shown a gradual decrease from 0.51 in December 2020 to 0.49 by December 2024. This ratio indicates the proportion of the company's capital structure that is financed by debt, with the remaining portion funded by equity.

A decrease in the debt-to-capital ratio over time suggests that Kinder Morgan has been able to reduce its reliance on debt financing relative to its total capital. This could signify improved financial stability, as lower debt levels generally imply lower financial risk and potentially better creditworthiness.

However, it is important to note that while a decreasing trend in the debt-to-capital ratio can be positive, the ideal level of debt varies based on the industry and specific circumstances of the company. It is crucial for investors and analysts to consider this ratio in conjunction with other financial metrics and qualitative factors to form a comprehensive assessment of Kinder Morgan's financial health and risk profile.