Northwest Natural Gas Co (NWN)
Solvency ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 3.78 | 4.05 | 3.58 | 3.61 | 3.84 | 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 |
Northwest Natural Gas Co has consistently maintained a very strong solvency position based on its solvency ratios. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have all remained at 0.00 throughout the reporting periods from March 31, 2020, to December 31, 2024. This indicates that the company is operating with minimal levels of debt in relation to its assets, capital, and equity.
Furthermore, the Financial leverage ratio, which measures the extent to which the company relies on debt financing, has also shown a declining trend over the period. The ratio decreased from 4.44 on March 31, 2020, to 3.78 on December 31, 2024. This downward trend in financial leverage suggests that the company is becoming less reliant on debt to finance its operations and investments.
Overall, the solvency ratios of Northwest Natural Gas Co demonstrate a solid financial position with a prudent approach to capital structure management, maintaining low levels of debt relative to its assets and equity.
Coverage ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 2.39 | 2.37 | 2.44 | 2.42 | 2.54 | 2.66 | 2.90 | 3.26 | 3.19 | 3.13 | 3.08 | 2.91 | 2.85 | 3.12 | 3.42 | 3.32 | 3.12 | 2.80 | 2.75 | 3.06 |
The interest coverage ratio of Northwest Natural Gas Co has shown some fluctuations over the past few years based on the provided data. The interest coverage ratio is used to assess a company’s ability to cover its interest expenses with its operating income.
From March 31, 2020, to December 31, 2022, the interest coverage ratio ranged between 2.75 and 3.42, indicating that the company was able to cover its interest expenses comfortably during this period. The ratio peaked at 3.42 on June 30, 2021, suggesting a strong ability to meet its interest obligations with operating earnings.
However, starting from March 31, 2023, the interest coverage ratio started to decline, falling to as low as 2.37 on September 30, 2024. This downward trend may raise concerns about the company's ability to cover its interest payments from its operating income.
Overall, the analysis suggests that Northwest Natural Gas Co had a relatively strong interest coverage ratio in the past few years, but the declining trend in recent periods may warrant a closer examination of the company's financial health and ability to manage its debt obligations.