One Gas Inc (OGS)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.28 | 0.34 | 0.44 | 0.26 | 0.23 |
| Debt-to-capital ratio | 0.44 | 0.51 | 0.61 | 0.41 | 0.38 |
| Debt-to-equity ratio | 0.78 | 1.03 | 1.57 | 0.71 | 0.60 |
| Financial leverage ratio | 2.81 | 3.01 | 3.58 | 2.70 | 2.68 |
Solvency ratios provide insight into an organization's ability to meet its long-term debt obligations. The solvency ratios for ONE Gas Inc indicate the company's financial health over the past five years.
The debt-to-assets ratio measures the proportion of total assets financed by debt. From 2019 to 2023, ONE Gas Inc has demonstrated a decreasing trend in this ratio, indicating a more conservative approach to leveraging debt to finance its assets.
The debt-to-capital ratio signifies the percentage of capital structure funded by debt. Similarly, this ratio has shown a downward trend during the same period, suggesting a decreasing reliance on debt financing in relation to the total capital.
The debt-to-equity ratio reveals the extent to which a company relies on debt to finance its operations compared to shareholder equity. ONE Gas Inc's decreasing trend from 2019 to 2023 indicates a reduction in debt relative to equity, which is generally viewed positively.
The financial leverage ratio measures the proportion of a company's total assets that are financed by debt. ONE Gas Inc has shown a declining trend in this ratio over the years, reflecting a reduced dependency on debt for funding its assets.
Overall, the declining trends in the solvency ratios of ONE Gas Inc over the past five years indicate an improving solvency position and a more conservative approach to managing debt levels and capital structure. This may suggest a more stable and secure financial outlook for the company and potentially lower financial risk.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 3.36 | 4.46 | 5.09 | 4.81 | 4.66 |
The interest coverage ratio for ONE Gas Inc has shown a decreasing trend over the past five years, declining from 5.15 in 2021 to 3.27 in 2023. This indicates that the company's ability to cover its interest expenses with its operating income has weakened over this period. Despite the decrease, the company's interest coverage ratio remains above 1, suggesting that ONE Gas Inc is still generating sufficient operating income to cover its interest payments. However, the downward trend in the ratio raises some concerns about the company's ability to comfortably meet its interest obligations in the future. Further analysis of the company's financial performance and debt management strategies may be warranted to assess the overall financial health and sustainability of ONE Gas Inc.