NorthWestern Corporation (NWE)
Financial leverage ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | ||
|---|---|---|---|---|
| Total assets | US$ in thousands | 7,997,520 | 7,854,070 | 7,713,820 |
| Total stockholders’ equity | US$ in thousands | 2,857,700 | 2,816,460 | 2,807,260 |
| Financial leverage ratio | 2.80 | 2.79 | 2.75 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $7,997,520K ÷ $2,857,700K
= 2.80
The financial leverage ratio for NorthWestern Corporation has been relatively stable over the last three quarters. The ratio stood at 2.75 as of June 30, 2024, increasing slightly to 2.79 by September 30, 2024, and then further to 2.80 by December 31, 2024.
A financial leverage ratio of around 2.75 to 2.80 indicates that the company is using debt financing to a moderate extent to fund its operations and investments. An increase in the ratio over time suggests that the company may be taking on slightly more debt compared to its equity.
It is essential for NorthWestern Corporation to monitor its financial leverage ratio closely to ensure that it maintains a healthy balance between debt and equity financing to support its growth and profitability objectives while managing financial risks effectively.
Peer comparison
Dec 31, 2024