Northwest Natural Gas Co (NWN)
Debt-to-equity 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-equity ratio | 1.11 | 1.06 | 1.12 | 0.97 | 0.93 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,425,440K ÷ $1,283,840K
= 1.11
The debt-to-equity ratio of Northwest Natural Holding Co has exhibited fluctuations over the past five years. In 2023, the ratio decreased to 1.30 from 1.36 in 2022. This suggests that the company relied less on debt financing in 2023 compared to the previous year. However, when compared to 2019, where the ratio was 1.19, it indicates an increase in leverage.
The ratio was highest in 2021 at 1.53, indicating a higher level of debt utilization relative to equity. The following year, in 2022, there was a slight decrease to 1.36, showing that the company may have made efforts to reduce its debt burden. The recent decrease in 2023 to 1.30 further supports this trend.
Overall, the trend in the debt-to-equity ratio suggests that Northwest Natural Holding Co has been managing its debt levels relative to equity over the past five years, with some fluctuations reflecting changes in the company's financing strategy.
Peer comparison
Dec 31, 2023