MDU Resources Group Inc (MDU)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.29 | 0.24 | 0.29 | 0.27 | 0.29 |
| Debt-to-capital ratio | 0.44 | 0.39 | 0.43 | 0.42 | 0.44 |
| Debt-to-equity ratio | 0.77 | 0.65 | 0.77 | 0.72 | 0.78 |
| Financial leverage ratio | 2.70 | 2.69 | 2.63 | 2.62 | 2.70 |
MDU Resources Group Inc's solvency ratios have shown some fluctuations over the past five years. The debt-to-assets ratio has remained relatively stable, varying between 0.28 to 0.32, indicating that the company finances about 28% to 32% of its assets through debt.
The debt-to-capital ratio has also exhibited a similar trend, hovering around 0.42 to 0.46, suggesting that debt accounts for approximately 42% to 46% of the company's capital structure. This ratio reflects the proportion of debt used in funding the company relative to the total capital employed.
The debt-to-equity ratio has shown a slightly increasing trend, reaching 0.82 in 2023 compared to 0.79 in 2019. This implies that the company's debt levels relative to equity have been rising over the years, indicating a higher reliance on debt financing compared to equity.
The financial leverage ratio, which reflects the extent to which a company is utilizing debt to finance its operations, has varied between 2.62 to 2.70. This ratio indicates that, on average, the company's total assets are funded at approximately 2.62 to 2.70 times the equity capital.
Overall, MDU Resources Group Inc's solvency ratios suggest that the company has maintained a moderate level of leverage over the past five years, with a slightly increasing trend in its debt-to-equity ratio. Investors and stakeholders may want to keep an eye on these ratios to assess the company's ability to meet its financial obligations and manage its debt levels effectively.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 5.15 | 7.21 | 5.97 | 5.92 | 5.04 |
The interest coverage ratio for MDU Resources Group Inc has shown a declining trend over the past five years, dropping from 4.88 in 2019 to 3.73 in 2023. This ratio indicates the company's ability to meet its interest obligations from its operating income. Despite the decrease, MDU Resources still maintains a relatively healthy interest coverage ratio above 1, indicating that the company is generating sufficient earnings to cover its interest expenses. However, the downward trend in the ratio may raise concerns about the company's ability to comfortably cover its interest costs in the future. It is important for investors and stakeholders to monitor this ratio closely to assess the company's financial health and debt servicing capacity.