MDU Resources Group Inc (MDU)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 2,236,900 | 2,317,850 | 2,593,850 | 2,211,580 | 2,226,570 |
| Total assets | US$ in thousands | 7,833,160 | 9,660,780 | 8,910,440 | 8,053,370 | 7,683,060 |
| Debt-to-assets ratio | 0.29 | 0.24 | 0.29 | 0.27 | 0.29 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $2,236,900K ÷ $7,833,160K
= 0.29
The debt-to-assets ratio of MDU Resources Group Inc has exhibited relatively stable trends over the past five years. The ratio has ranged from 0.28 to 0.32 during this period, reflecting the proportion of the company's assets financed by debt. A lower debt-to-assets ratio indicates a lower level of financial risk, as it suggests that a smaller portion of the company's assets is funded through debt obligations.
In particular, the ratio decreased from 0.29 in 2019 to 0.28 in 2020, indicating a reduction in leverage and potentially improved financial stability. However, it then increased slightly in 2021 and remained constant in 2023 at 0.31. This could signal a stabilization in the company's debt and asset structure. Overall, MDU Resources Group Inc's debt-to-assets ratio appears to be at a moderate level, suggesting a balanced approach to financing its assets through a mix of equity and debt.
Peer comparison
Dec 31, 2023