MDU Resources Group Inc (MDU)

Debt-to-capital ratio

		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
Long-term debt	US$ in thousands	2,236,900	2,279,830	2,246,100	2,769,040	2,317,850	2,192,410	2,003,880	2,599,810	2,593,850	2,326,720	2,335,500	2,251,720	2,211,580	2,268,730	2,265,320	2,438,680	2,226,570	2,180,950	2,327,980	1,946,180
Total stockholders’ equity	US$ in thousands	2,905,230	2,757,430	2,706,190	3,575,380	3,587,130	3,491,860	3,386,810	3,360,720	3,382,870	3,332,280	3,198,800	3,100,310	3,079,100	3,012,760	2,897,690	2,836,590	2,847,250	2,795,610	2,660,300	2,605,690
Debt-to-capital ratio		0.44	0.45	0.45	0.44	0.39	0.39	0.37	0.44	0.43	0.41	0.42	0.42	0.42	0.43	0.44	0.46	0.44	0.44	0.47	0.43

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 shown some fluctuations over the past eight quarters. The ratio ranged from 0.45 to 0.49, indicating that the company's level of debt relative to its total capital has been relatively stable.

In general, a lower debt-to-capital ratio suggests a lower financial risk for the company, as it implies that a smaller proportion of its capital structure is financed through debt. On the other hand, a higher debt-to-capital ratio may indicate higher financial risk, as the company relies more on debt to finance its operations.

While the fluctuations in the debt-to-capital ratio are relatively minor, it is essential to continue monitoring this metric to ensure that the company's capital structure remains sustainable and aligned with its financial objectives. It is also crucial for investors and stakeholders to consider other financial metrics and factors when evaluating the overall financial health and risk profile of MDU Resources Group Inc.