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.