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
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
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
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

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.