National Fuel Gas Company (NFG)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.26 | 0.31 | 0.28 | 0.28 | 0.29 | 0.29 | 0.26 | 0.26 | 0.26 | 0.26 | 0.27 | 0.35 | 0.35 | 0.36 | 0.37 | 0.30 | 0.38 | 0.37 | 0.32 | 0.32 |
| Debt-to-capital ratio | 1.01 | 1.00 | 0.97 | 0.97 | 1.02 | 1.02 | 1.03 | 1.16 | 1.43 | 0.51 | 0.53 | 0.55 | 0.60 | 0.57 | 0.56 | 0.51 | 0.57 | 0.54 | 0.51 | 0.49 |
| Debt-to-equity ratio | — | 522.20 | 31.68 | 35.40 | — | — | — | — | — | 1.04 | 1.12 | 1.25 | 1.47 | 1.31 | 1.25 | 1.04 | 1.33 | 1.18 | 1.03 | 0.98 |
| 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 |
The solvency ratios of National Fuel Gas Company have fluctuated over the periods analyzed. The debt-to-assets ratio has generally remained within the range of 0.26 to 0.37, indicating that the company finances its assets with moderate levels of debt.
The debt-to-capital ratio has shown variability, ranging from 0.51 to 1.43. This suggests that the company relies on a mix of debt and equity to fund its operations and investments, with some periods indicating higher leverage than others.
The debt-to-equity ratio has also exhibited fluctuation, reaching as high as 522.20 in one period. This indicates that the company has at times had significant debt compared to its equity, which could potentially raise concerns about financial risk.
The financial leverage ratio has shown similar variability, with values ranging from 3.07 to 4.19. This ratio reflects the company's level of financial risk and amplifies the impact of debt on its overall capital structure.
Overall, these solvency ratios suggest that National Fuel Gas Company has managed its debt levels to finance its operations, with periods of higher and lower leverage observed. It is important for the company to maintain a balance between debt and equity to ensure sustainable financial health.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 1.38 | 3.92 | 5.47 | 5.32 | 5.73 | 6.10 | 6.21 | 6.48 | 6.25 | 6.04 | 5.93 | 4.92 | 4.37 | 2.22 | 1.79 | 0.20 | 0.26 | 2.63 | 2.98 | 4.65 |
The interest coverage ratio for National Fuel Gas Company has shown fluctuations over the past few years, indicating the company's ability to cover its interest expenses with its operating income.
The interest coverage ratio was relatively stable and healthy in the period from December 2019 to June 2020, ranging from 2.63 to 4.65, suggesting a strong ability to meet interest obligations comfortably. However, there was a significant decline in coverage in the following quarters, with ratios dropping below 2.5.
From September 2020 to June 2021, the interest coverage ratio fell to low levels between 1.79 and 2.22, raising concerns about the company's ability to cover its interest expenses adequately with operating income during this period.
There was a slight improvement in interest coverage in the subsequent quarters, reaching a ratio of 6.25 in September 2022. The trend continued to improve throughout 2023, peaking at 6.48 in December 2023. This improvement suggests that the company has been able to generate stronger operating income relative to its interest expenses.
In the most recent period, ending September 2024, the interest coverage ratio decreased to 1.38. Although still positive, this decline raises a cautionary flag as it indicates a reduced ability to cover interest payments with operating income compared to the previous quarters.
Overall, the analysis of National Fuel Gas Company's interest coverage reveals fluctuations in the company's ability to cover its interest expenses over the reviewed periods. Analysts and investors may want to monitor future financial performance to understand the sustainability of the company's ability to meet its interest obligations.