National Fuel Gas Company (NFG)

National Fuel Gas Company's solvency ratios indicate the company's ability to meet its long-term obligations and manage its financial leverage effectively.

The debt-to-assets ratio has been relatively stable over the past five years, decreasing from 0.38 in 2020 to 0.26 in 2024. This indicates that the company has been successful in reducing its reliance on debt to fund its assets, which is a positive sign for its financial health.

The debt-to-capital ratio shows a fluctuation over the years, with a peak of 1.43 in 2022 and lower ratios in the subsequent years. A ratio above 1 suggests that the company has more debt than capital, but the decreasing trend indicates that National Fuel Gas Company has been able to better manage its debt relative to its overall capital structure.

The debt-to-equity ratio was not available for the years prior to 2021, but it is evident that the company's reliance on debt compared to equity has decreased over time, as seen in the decreasing trend of the debt-to-assets ratio.

The financial leverage ratio, which was not available for the years prior to 2020, also shows a decreasing trend from 3.53 in 2020 to 4.18 in 2021. This indicates that the company's reliance on debt to finance its operations has increased over the years, but the trend has been steady since 2021.

Overall, the solvency ratios of National Fuel Gas Company suggest that the company has been successful in managing its debt levels and improving its financial leverage over the years, which is a positive indicator of its long-term financial stability.

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Coverage ratios

The interest coverage ratio measures a company's ability to meet its interest payments on outstanding debt. National Fuel Gas Company's interest coverage has fluctuated over the past five years, as evident from the data provided.

In 2024, the interest coverage ratio was 1.63, indicating that the company earned $1.63 for every $1 of interest expense. This suggests that the company's ability to cover its interest payments decreased compared to the previous year.

In 2023 and 2022, the interest coverage ratios were 5.86 and 6.24, respectively, reflecting a relatively strong ability to meet interest obligations. These years showed consistent improvement in the company's ability to cover interest expenses.

In 2021, the interest coverage ratio decreased to 4.27, which, although lower than the previous years, still indicates a healthy ability to cover interest payments.

Notably, in 2020, the interest coverage ratio was exceptionally low at 0.10, signaling a significant challenge in meeting interest obligations, possibly due to a combination of high debt levels and lower earnings.

Overall, National Fuel Gas Company's interest coverage has varied over the years, with some years showing strong ability to cover interest payments and others indicating potential challenges. It is important for investors and stakeholders to monitor this ratio closely to assess the company's financial health and debt servicing capabilities.