MDU Resources Group Inc (MDU)
Debt-to-equity 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-equity ratio | 0.77 | 0.65 | 0.77 | 0.72 | 0.78 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $2,236,900K ÷ $2,905,230K
= 0.77
The debt-to-equity ratio of MDU Resources Group Inc has shown fluctuations over the past five years. The ratio was 0.79 in 2019, increased to 0.73 in 2020, and further fluctuated to 0.81 in 2021. There was a slight increase to 0.86 in 2022, followed by a decrease to 0.82 in 2023.
The trend indicates that the company has been relying more on debt financing relative to equity in recent years, as seen through the overall upward trajectory of the ratio. A higher debt-to-equity ratio can indicate increased financial leverage and potential higher financial risk, as the company has more debt obligations relative to its equity.
While the ratio of 0.82 in 2023 is lower compared to the previous year, it still suggests that the company has a significant amount of debt in its capital structure. This could impact the company's financial flexibility, interest payments, and overall solvency.
It would be essential for stakeholders to monitor this ratio closely to ensure the company's debt levels are manageable and sustainable in the long term. The company's ability to service its debt obligations and maintain a healthy balance between debt and equity will be key considerations for its future financial health and stability.
Peer comparison
Dec 31, 2023