National Fuel Gas Company (NFG)

The solvency ratios of National Fuel Gas Co. indicate the company's ability to meet its long-term financial obligations and its reliance on debt to finance its operations.

The debt-to-assets ratio shows a decreasing trend from 0.38 in 2020 to 0.32 in 2023, suggesting a more conservative approach to debt financing and a stronger asset base.

Similarly, the debt-to-capital and debt-to-equity ratios also display a declining pattern, from 0.61 to 0.47 and from 1.56 to 0.90, respectively, over the same period. This indicates a reduction in the company's reliance on debt and a more balanced capital structure.

Furthermore, the financial leverage ratio has decreased from 4.18 in 2021 to 2.79 in 2023, signaling a lower degree of financial leverage and potential decreased financial risk.

Overall, the declining trends in these solvency ratios suggest that National Fuel Gas Co. has been effectively managing its long-term debt and achieving a more sustainable and stable financial position over the past few years.

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Coverage ratios

The interest coverage ratio for National Fuel Gas Co. has displayed a fluctuating trend over the past five years, ranging from 4.09 to 6.15. This ratio measures the company's ability to meet its interest obligations, with higher values indicating a greater capacity to do so. The consistent values above 4 suggest that the company has generally been able to comfortably cover its interest expenses using its operating income. The slight fluctuations in the ratio may be attributed to changes in the company's operating income or changes in its interest expenses, which could be further examined to understand the underlying factors. Overall, the interest coverage ratio indicates a satisfactory ability to meet interest obligations, and the company's financial position appears relatively stable in this aspect over the analyzed period.