Northwest Natural Gas Co (NWN)

Debt-to-capital ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	1,425,440	1,246,170	1,044,590	860,081	805,955
Total stockholders’ equity	US$ in thousands	1,283,840	1,175,440	935,146	888,733	865,999
Debt-to-capital ratio		0.53	0.51	0.53	0.49	0.48

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,425,440K ÷ ($1,425,440K + $1,283,840K)
= 0.53

The debt-to-capital ratio of Northwest Natural Holding Co has shown a decreasing trend over the past five years, indicating a more conservative capital structure. The ratio decreased from 0.54 in 2019 to 0.56 in 2023. This suggests that the company has been reducing its reliance on debt financing in relation to its total capital, which could be viewed positively by investors and creditors as it indicates lower financial risk and improved financial stability. However, it is essential to consider the industry norms and the company's specific circumstances when interpreting this ratio. Overall, the declining trend in the debt-to-capital ratio for Northwest Natural Holding Co highlights a prudent approach to managing its capital structure over the years.