Northwest Natural Gas Co (NWN)

Financial leverage 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
Total assets	US$ in thousands	4,867,090	4,665,120	4,536,700	4,592,100	4,748,330	4,300,710	4,100,520	4,054,630	4,064,600	3,929,220	3,783,500	3,758,620	3,756,380	3,618,100	3,641,350	4,001,530	3,428,450	3,251,620
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
Financial leverage ratio		3.79	3.83	3.66	3.68	4.04	3.84	3.60	4.10	4.35	4.41	4.10	4.01	4.23	4.24	4.12	4.44	3.96	3.85

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $4,867,090K ÷ $1,283,840K
= 3.79

The financial leverage ratio of Northwest Natural Holding Co has shown some fluctuations over the past eight quarters, ranging from 3.60 to 4.10. The ratio indicates that the company's financial leverage has remained relatively high compared to its equity levels during this period.

The downward trend in the ratio from Q4 2022 (4.04) to Q2 2023 (3.66) suggests a potential decrease in the company's reliance on debt to finance its operations and investments. However, there was a slight increase in Q3 2023 (3.83) and a stabilization in Q4 2023 (3.79), indicating a potential shift back towards higher financial leverage.

It would be important for stakeholders to monitor this ratio closely to understand the company's borrowing and capital structure decisions, as higher financial leverage can signify increased financial risk and impact the company's ability to service its debt obligations in the long run.