NorthWestern Corporation (NWE)

NorthWestern Corporation's solvency ratios indicate a stable financial position over the specified period. The Debt-to-assets ratio remained consistent at around 0.33 to 0.34, suggesting that the company's debt level relative to its total assets is well-managed.

Similarly, the Debt-to-capital ratio also remained stable, ranging from 0.48 to 0.49, indicating that the proportion of debt used to finance the company's operations compared to its total capital stayed relatively constant.

The Debt-to-equity ratio increased slightly from 0.91 to 0.94, which indicates a moderate increase in the company's reliance on debt financing relative to equity. However, the ratio still remains below 1, signifying that equity continues to play a significant role in the company's capital structure.

The Financial leverage ratio showed a slight upward trend, increasing from 2.75 to 2.80. This suggests that the company's reliance on debt to support its operations increased marginally over the period, but the overall level of leverage remains at a reasonable level.

Overall, NorthWestern Corporation's solvency ratios reflect a prudent approach to managing its debt levels and maintaining a healthy balance between debt and equity in its capital structure.

---

Coverage ratios

NorthWestern Corporation's interest coverage ratio, based on the data provided, has shown consistency over the three periods analyzed. The interest coverage ratio for June 30, 2024, and September 30, 2024, was reported at 2.66, indicating that the company generated 2.66 times the operating income to cover its interest expenses during those periods.

However, there was a slight decline in the interest coverage ratio for December 31, 2024, where it dropped to 2.46. This decrease may suggest that NorthWestern Corporation's ability to cover its interest expenses with its operating income weakened slightly at the end of the year.

Overall, while the interest coverage ratio remained above 1 (indicating that the company's earnings can cover its interest obligations), it is important for NorthWestern Corporation to monitor this ratio closely to ensure it maintains a healthy financial position and remains capable of meeting its interest payment obligations.