National Fuel Gas Company (NFG)

Financial leverage ratio

		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	Dec 31, 2019
Total assets	US$ in thousands	8,319,770	8,481,040	8,677,020	8,587,490	8,280,260	8,106,630	7,967,240	8,134,910	7,896,260	8,112,090	7,805,020	7,589,670	7,464,820	7,208,680	7,115,650	7,039,170	6,964,940	7,118,980	6,708,660	6,702,660
Total stockholders’ equity	US$ in thousands	-15,476	5,050	75,340	67,381	-55,060	-49,384	-54,864	-293,746	-625,733	2,003,950	1,863,660	2,110,200	1,786,210	2,011,110	2,098,970	2,044,620	1,971,990	2,225,860	2,079,960	2,182,140
Financial leverage ratio		—	1,679.41	115.17	127.45	—	—	—	—	—	4.05	4.19	3.60	4.18	3.58	3.39	3.44	3.53	3.20	3.23	3.07

September 30, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $8,319,770K ÷ $-15,476K
= —

The financial leverage ratio of National Fuel Gas Company has displayed fluctuations over the periods provided. The ratio increased significantly to 1,679.41 in June 2024 from relatively lower levels in the preceding periods. This indicates a substantial increase in the company's financial leverage, suggesting that it is relying more on debt financing to support its operations and growth.

The surge in the financial leverage ratio in June 2024 could be a result of the company taking on additional debt, issuing bonds, or increasing its borrowings during that period. A high financial leverage ratio signifies higher financial risk as the company has a larger proportion of debt in its capital structure compared to equity.

Prior to June 2024, the financial leverage ratio fluctuated around the range of 3 to 4, indicating a moderate level of leverage in the company's capital structure. This range suggests a balanced mix of debt and equity financing, which is generally considered healthy for a company.

It is essential for stakeholders to monitor changes in the financial leverage ratio to assess the company's risk profile and financial health. A sudden increase in the ratio, as observed in June 2024, may warrant further investigation into the company's debt management and sustainability of its capital structure.