Northwest Natural Gas Co (NWN)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.29 | 0.31 | 0.29 | 0.28 | 0.26 | 0.30 | 0.25 | 0.26 | 0.26 | 0.23 | 0.24 | 0.23 | 0.23 | 0.24 | 0.25 | 0.24 | 0.24 | 0.25 |
| Debt-to-capital ratio | 0.53 | 0.54 | 0.51 | 0.51 | 0.51 | 0.53 | 0.48 | 0.51 | 0.53 | 0.51 | 0.50 | 0.48 | 0.49 | 0.50 | 0.51 | 0.51 | 0.48 | 0.49 |
| 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 |
| 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 |
The solvency ratios of Northwest Natural Holding Co indicate the company's ability to meet its long-term debt obligations. The debt-to-assets ratio has remained relatively stable around 0.34 to 0.36 over the past few quarters, suggesting that roughly 34% to 36% of the company's assets are financed by debt.
Similarly, the debt-to-capital ratio has hovered around 0.56 to 0.58, indicating that debt constitutes approximately 56% to 58% of the company's total capital structure. The debt-to-equity ratio has shown some variability but generally ranges between 1.27 to 1.39, which implies that the company relies on debt to finance around 127% to 139% of its equity.
The financial leverage ratio, which measures the extent of a company's financial leverage, has fluctuated notably, ranging from 3.60 to 4.10. A higher financial leverage ratio signifies higher financial risk and indicates that the company is using more debt to finance its assets.
Overall, the stability in the debt-to-assets and debt-to-capital ratios suggests a consistent financing strategy, while the fluctuations in the debt-to-equity ratio and financial leverage ratio may indicate changing capital structures and risk profiles in the company's operations. Investors and stakeholders should closely monitor these solvency ratios to assess the company's ability to repay its debts and manage financial risks effectively.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 2.42 | 2.59 | 2.87 | 3.22 | 3.15 | 3.31 | 3.45 | 3.48 | 3.67 | 3.80 | 4.05 | 3.81 | 3.45 | 3.12 | 3.04 | 3.35 | 3.36 | 3.46 |
Northwest Natural Holding Co's interest coverage ratio has shown a gradual decrease from Q1 2023 to Q4 2023, indicating that the company's ability to meet its interest obligations from its earnings has weakened over this period. Despite the fluctuations, the interest coverage ratio has remained above 2 throughout the analyzed period, suggesting that the company's earnings before interest and taxes (EBIT) are generally sufficient to cover its interest expenses. This signifies a reasonable level of financial solvency and indicates that the company is at a lower risk of defaulting on its debt payments. However, the decreasing trend in the interest coverage ratio should be monitored closely to ensure that the company's financial health remains stable in the future.