MDU Resources Group Inc (MDU)
Solvency ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 2.62 | 2.67 | 2.64 | 2.63 | 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 |
The solvency ratios of MDU Resources Group Inc indicate a strong financial position in terms of its ability to meet its long-term obligations.
- Debt-to-assets ratio: The company consistently maintains a debt-to-assets ratio of 0.00, reflecting that the company has no debt relative to its total assets. This indicates a low level of financial risk and a strong ability to cover its obligations with its existing assets.
- Debt-to-capital ratio: Similar to the debt-to-assets ratio, the debt-to-capital ratio remains at 0.00 throughout the periods analyzed. This suggests that the company's capital structure is not heavily reliant on debt financing, which enhances its financial stability and flexibility.
- Debt-to-equity ratio: The debt-to-equity ratio is also consistently at 0.00, indicating that the company's reliance on equity to finance its operations far outweighs its use of debt. This signifies a conservative financial strategy and lower financial risk.
- Financial leverage ratio: The financial leverage ratio fluctuates slightly over the periods, ranging from 2.57 to 2.85. Despite these fluctuations, the ratio generally remains within a reasonable range, indicating that the company is effectively utilizing debt to support its operations without becoming excessively leveraged.
Overall, based on the solvency ratios analyzed, MDU Resources Group Inc demonstrates a solid financial foundation with minimal debt levels relative to its assets, capital, and equity. This suggests good financial health and a low risk of insolvency in the foreseeable future.
Coverage ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 2.83 | 4.46 | 4.52 | 5.67 | 4.87 | 4.88 | 4.21 | 3.28 | 3.34 | 3.16 | 5.04 | 5.60 | 5.96 | 6.29 | 6.41 | 6.34 | 5.92 | 5.60 | 5.35 | 4.83 |
Interest coverage is a crucial financial ratio that indicates a company's ability to meet its interest obligations on outstanding debt. MDU Resources Group Inc has shown a fluctuating trend in its interest coverage ratio over the years.
From March 31, 2020, to September 30, 2021, MDU Resources Group Inc saw a steady improvement in its interest coverage ratio, indicating a stronger ability to cover its interest expenses. The ratio increased from 4.83 to 6.29 during this period, reflecting a positive trend.
However, the interest coverage ratio started to decline from March 31, 2022, reaching its lowest point at 2.83 by December 31, 2024. A declining interest coverage ratio may indicate a potential strain on the company's ability to meet its interest obligations comfortably.
It is essential for investors and stakeholders to closely monitor MDU Resources Group Inc's interest coverage ratio to assess the company's financial health and its ability to manage debt effectively. A lower interest coverage ratio could raise concerns about the company's ability to service its debt and may indicate increased financial risk.