Northwest Natural Gas Co (NWN)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.25 | 3.79 | 4.04 | 4.35 | 4.23 |
Northwest Natural Gas Co's solvency ratios reflect a strong financial position with consistently low debt levels relative to assets, capital, and equity. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have all remained at 0.00 across the years from 2020 to 2024, indicating that the company has no significant debt obligations compared to its total assets, capital, or equity.
Furthermore, the Financial leverage ratio shows a declining trend over the period, decreasing from 4.23 in 2020 to 1.25 in 2024. This suggests that Northwest Natural Gas Co has been effectively managing its debt and leveraging activities to reduce financial risk and improve overall solvency.
Overall, based on these solvency ratios, Northwest Natural Gas Co appears to be in a robust financial position with minimal debt burden and strong ability to meet its financial obligations in the long term.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 2.39 | 2.65 | 3.17 | 2.85 | 2.48 |
Based on the data provided, the interest coverage ratio of Northwest Natural Gas Co has shown some fluctuation over the past five years. It increased from 2.48 in 2020 to 3.17 in 2022, indicating an improvement in the company's ability to cover its interest expenses from its operating income. However, there was a slight downturn in 2023 and 2024, with the interest coverage ratio decreasing to 2.65 and 2.39 respectively.
Overall, Northwest Natural Gas Co has maintained a reasonable interest coverage ratio above 2 throughout the period, suggesting that the company has generally been able to meet its interest obligations comfortably. However, the slight decrease in the ratio in the last two years indicates a potential need for the company to monitor its interest expenses and operating income closely to ensure continued financial stability.