Northwest Natural Gas Co (NWN)

Debt-to-equity ratio

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Long-term debt	US$ in thousands	1,425,440	1,424,600	1,294,580	1,294,590	1,246,170	1,287,000	1,045,530	1,044,700	1,044,590	916,026	915,501	860,654	860,081	860,235	918,887	953,962	805,955	806,014	806,001	632,484
Total stockholders’ equity	US$ in thousands	1,283,840	1,219,540	1,240,280	1,248,310	1,175,440	1,120,860	1,138,780	987,944	935,146	891,461	922,826	936,324	888,733	852,775	884,001	901,741	865,999	844,669	876,746	794,227
Debt-to-equity ratio		1.11	1.17	1.04	1.04	1.06	1.15	0.92	1.06	1.12	1.03	0.99	0.92	0.97	1.01	1.04	1.06	0.93	0.95	0.92	0.80

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 been fluctuating over the past eight quarters, ranging from 1.11 to 1.39. The ratio measures the company's level of financial leverage by comparing its total liabilities to its shareholder equity.

In Q2 2022, the ratio was at its lowest point of 1.11, indicating a conservative capital structure with a lower reliance on debt financing compared to equity. However, in Q3 2022, the ratio increased to 1.32 and continued to vary throughout the following quarters.

The highest debt-to-equity ratio of 1.39 was recorded in Q1 2022, suggesting a higher level of debt relative to equity in that period. This could indicate increased financial risk and potential vulnerability to economic downturns or interest rate fluctuations.

Overall, the fluctuating trend in Northwest Natural Holding Co's debt-to-equity ratio suggests varying levels of debt and equity financing over time. It is essential for the company to carefully manage its capital structure to ensure a healthy balance between debt and equity to support sustainable growth and mitigate financial risks.