MDU Resources Group Inc (MDU)

Solvency ratios

	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
Debt-to-assets ratio	0.29	0.29	0.29	0.28	0.24	0.23	0.22	0.29	0.29	0.27	0.28	0.28	0.27	0.28	0.29	0.31	0.29	0.28	0.31	0.27
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
Debt-to-equity ratio	0.77	0.83	0.83	0.77	0.65	0.63	0.59	0.77	0.77	0.70	0.73	0.73	0.72	0.75	0.78	0.86	0.78	0.78	0.88	0.75
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

The solvency ratios for MDU Resources Group Inc provide insight into the company's ability to meet its financial obligations in the long term.

The debt-to-assets ratio has been relatively stable over the quarters, with values ranging from 0.31 to 0.34. This ratio indicates that around 31% to 34% of the company's assets are financed by debt, while the remaining percentage is funded by equity. A lower debt-to-assets ratio is generally seen as less risky, indicating a lower reliance on debt financing.

The debt-to-capital ratio shows a similar trend, fluctuating between 0.45 and 0.49. This ratio signifies the proportion of the company's capital that is provided by debt. MDU Resources Group Inc's debt-to-capital ratio suggests that approximately 45% to 49% of its capital structure is composed of debt, with the remaining percentage coming from equity.

The debt-to-equity ratio, on the other hand, has shown more variation, ranging from 0.82 to 0.96. This ratio reflects the company's financial leverage and indicates how much of the company's operations are financed by debt versus equity. A higher debt-to-equity ratio may imply higher financial risk, as it suggests a heavier reliance on debt financing.

Finally, the financial leverage ratio has demonstrated minor fluctuations over the quarters, with values between 2.67 and 2.85. This ratio highlights the company's overall financial risk and leverage, showing how much of the company's assets are funded by debt compared to equity. A higher financial leverage ratio indicates a greater reliance on debt financing, which may lead to increased financial risk.

In summary, MDU Resources Group Inc's solvency ratios suggest a moderate level of debt financing, with relatively stable trends in debt-to-assets, debt-to-capital, and financial leverage ratios. The varying debt-to-equity ratio signals some fluctuation in financial risk over the quarters. It is important for investors and stakeholders to monitor these solvency ratios to assess the company's long-term financial health and ability to handle debt obligations.

Coverage ratios

	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
Interest coverage	4.60	4.22	4.92	4.32	4.59	5.24	5.31	5.61	5.97	6.30	6.41	6.33	5.92	5.60	5.37	4.83	5.04	4.97	4.64	4.63

Interest coverage is a financial ratio that indicates a company's ability to meet its interest obligations on its debt. The interest coverage ratio for MDU Resources Group Inc has shown some fluctuations over the past eight quarters, ranging from a low of 3.18 in Q3 2023 to a high of 5.39 in Q1 2022.

A higher interest coverage ratio is generally considered more favorable as it suggests that the company is more capable of servicing its debt with its operating income. MDU Resources Group Inc's interest coverage ratios have generally been above 4, indicating a strong ability to cover its interest payments.

However, the fluctuations in the interest coverage ratio should be closely monitored to understand the reasons behind the variations. A consistent downward trend in the interest coverage ratio could potentially signal a deteriorating financial position, while a consistent upward trend could indicate improving financial health.

In conclusion, MDU Resources Group Inc has maintained a relatively healthy interest coverage ratio over the past eight quarters, but investors and stakeholders should continue to monitor this ratio to assess the company's ability to meet its debt obligations in the future.