MDU Resources Group Inc (MDU)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 2,905,230 | 3,587,130 | 3,382,870 | 3,079,100 | 2,847,250 |
| Debt-to-capital ratio | 0.44 | 0.39 | 0.43 | 0.42 | 0.44 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $2,236,900K ÷ ($2,236,900K + $2,905,230K)
= 0.44
The debt-to-capital ratio of MDU Resources Group Inc has fluctuated over the past five years, ranging from 0.42 to 0.46. The ratio indicates the proportion of the company's capital that is financed through debt. A decreasing trend in the debt-to-capital ratio implies a lower reliance on debt for funding, which may reduce financial risk but could also limit growth opportunities. Conversely, an increasing trend suggests higher debt levels relative to capital, which could increase financial leverage and interest payment obligations.
Overall, with the ratio hovering mostly around 0.45, MDU Resources appears to maintain a moderate level of debt relative to its capital structure. This stability in the ratio over the years may indicate a balanced approach to financing that seeks to manage risk while still utilizing debt to support growth and investment strategies. Nonetheless, further examination of the company's overall financial health and the reasons behind any fluctuations in the ratio would provide a more complete picture of its financial strength and strategy.
Peer comparison
Dec 31, 2023