Northwest Natural Gas Co (NWN)

Solvency ratios provide insights into a company's ability to meet its long-term financial obligations. Northwest Natural Holding Co's solvency ratios over the past five years show a stable trend.

The debt-to-assets ratio has remained relatively consistent around 0.34 to 0.35, indicating that about one-third of the company's assets are financed by debt. This suggests a moderate level of leverage in the company's capital structure.

The debt-to-capital ratio has also been steady, ranging from 0.54 to 0.61, with a slight increase in 2022. This ratio indicates the proportion of a company's capital that is funded by debt, and Northwest Natural Holding Co's levels suggest a moderate reliance on debt to fund its operations.

The debt-to-equity ratio shows an upward trend from 1.19 in 2019 to 1.53 in 2021, before decreasing to 1.30 in 2023. This trend indicates an increasing reliance on debt relative to equity over the years, although the recent decrease in 2023 suggests a slight improvement in the company's debt leveraging.

The financial leverage ratio, which measures the company's total assets relative to equity, has fluctuated between 3.79 and 4.35 over the period. This ratio reflects the company's debt-to-equity relationship, with higher values indicating higher financial leverage.

Overall, Northwest Natural Holding Co's solvency ratios suggest that the company has maintained a moderate level of debt in its capital structure over the years, with some fluctuations in leverage ratios. It is important for stakeholders to monitor these ratios to assess the company's ability to meet its long-term debt obligations.

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Coverage ratios

Northwest Natural Holding Co's interest coverage ratio has shown a declining trend over the past five years, with values of 2.42 in 2023, 3.15 in 2022, 3.67 in 2021, 3.45 in 2020, and 3.36 in 2019. This ratio indicates the company's ability to meet its interest obligations from its operating income. A higher ratio is generally considered more favorable as it suggests the company has sufficient earnings to cover its interest expenses. The decreasing trend in Northwest Natural Holding Co's interest coverage ratio may raise concerns about its ability to service its debt obligations in the long term, warranting further investigation into the company's financial health and sustainability of its debt levels.