MDU Resources Group Inc (MDU)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 7,833,160 | 7,869,150 | 7,684,850 | 9,842,590 | 9,660,780 | 9,607,130 | 9,318,960 | 8,970,720 | 8,910,440 | 8,568,860 | 8,298,210 | 8,069,280 | 8,053,370 | 8,125,500 | 7,911,130 | 7,850,520 | 7,683,060 | 7,730,610 | 7,591,490 | 7,278,920 |
| 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 |
| Financial leverage ratio | 2.70 | 2.85 | 2.84 | 2.75 | 2.69 | 2.75 | 2.75 | 2.67 | 2.63 | 2.57 | 2.59 | 2.60 | 2.62 | 2.70 | 2.73 | 2.77 | 2.70 | 2.77 | 2.85 | 2.79 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $7,833,160K ÷ $2,905,230K
= 2.70
MDU Resources Group Inc's financial leverage ratio has been relatively stable over the past eight quarters, ranging between 2.67 and 2.85. The financial leverage ratio measures the extent to which a company utilizes debt to finance its operations, with higher ratios indicating higher levels of debt relative to equity.
MDU Resources Group Inc's average financial leverage ratio over the period is approximately 2.75, suggesting that the company relies more on debt funding compared to equity. This could indicate that the company has a higher risk profile due to its higher level of debt obligations.
It is important to note that while a higher financial leverage ratio can magnify returns during good economic times, it can also increase financial vulnerability during downturns. Investors and analysts should closely monitor MDU Resources Group Inc's debt levels and repayment capabilities to assess the company's financial health and risk management strategies.
Peer comparison
Dec 31, 2023