NorthWestern Corporation (NWE)

Debt-to-capital ratio

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024
Long-term debt US$ in thousands 2,695,340 2,567,940 2,569,550
Total stockholders’ equity US$ in thousands 2,857,700 2,816,460 2,807,260
Debt-to-capital ratio 0.49 0.48 0.48

December 31, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $2,695,340K ÷ ($2,695,340K + $2,857,700K)
= 0.49

The debt-to-capital ratio of NorthWestern Corporation for the second quarter of 2024 was 0.48, the same as the previous quarter. By the end of the fourth quarter of 2024, the ratio increased slightly to 0.49. This indicates that NorthWestern Corporation finances 49% of its operations through debt, while the remaining 51% is funded through equity. The stability in the ratio over the first three quarters suggests a consistent capital structure, but the slight increase in the last quarter may indicate a small shift towards more reliance on debt for financing. It is important for the company to closely monitor this ratio to ensure a healthy balance between debt and equity in its capital structure.