National Fuel Gas Company (NFG)

Debt-to-capital ratio

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Long-term debt	US$ in thousands	2,384,480	2,083,410	2,628,690	2,629,580	2,133,720
Total stockholders’ equity	US$ in thousands	-55,060	-625,733	1,786,210	1,971,990	2,139,020
Debt-to-capital ratio		1.02	1.43	0.60	0.57	0.50

September 30, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $2,384,480K ÷ ($2,384,480K + $-55,060K)
= 1.02

National Fuel Gas Co.'s debt-to-capital ratio has shown a declining trend over the past five years. The ratio decreased from 0.51 in 2019 to 0.47 in 2023, indicating that the company has become less reliant on debt to finance its operations and investments relative to its capital.

A decreasing debt-to-capital ratio generally reflects a stronger financial position and lower financial risk. It suggests that the company has either reduced its debt levels, increased its capital through equity financing, or a combination of both.

The downward trend in this ratio could be a positive indicator for investors and creditors, as it may indicate improved financial stability and reduced dependence on external financing, especially debt. However, it's important to consider the overall context of the company's financial strategy and industry benchmarks in interpreting this trend.