National Fuel Gas Company (NFG)

Financial leverage ratio

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Total assets	US$ in thousands	8,280,260	7,896,260	7,464,820	6,964,940	6,462,160
Total stockholders’ equity	US$ in thousands	-55,060	-625,733	1,786,210	1,971,990	2,139,020
Financial leverage ratio		—	—	4.18	3.53	3.02

September 30, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $8,280,260K ÷ $-55,060K
= —

The financial leverage ratio of National Fuel Gas Co. has shown a decreasing trend over the past five years. The ratio decreased from 4.18 in 2021 to 2.79 in 2023, indicating a reduction in the company's reliance on debt to finance its assets. This decrease in the ratio suggests that the company's financial risk and potential for insolvency may have declined over the years. A lower financial leverage ratio generally signifies a more conservative capital structure, which can be perceived positively by investors and creditors. It is important for stakeholders to monitor this trend to ensure the company maintains a healthy balance between debt and equity financing.