One Gas Inc (OGS)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 2.71 | 2.81 | 3.01 | 3.58 | 2.70 |
One Gas Inc has consistently maintained a strong solvency position as evidenced by its low debt-to-assets, debt-to-capital, and debt-to-equity ratios, all remaining at 0.00 from December 31, 2020, to December 31, 2024. This indicates that the company has minimal reliance on debt to finance its assets and operations.
Additionally, the financial leverage ratio for One Gas Inc fluctuated slightly over the same period, starting at 2.70 in December 31, 2020, peaking at 3.58 in December 31, 2021, and then gradually decreasing to 2.71 by December 31, 2024. Despite the fluctuations, the financial leverage ratio remained relatively stable, indicating that the company's capital structure is efficiently managed with a moderate level of financial leverage.
Overall, One Gas Inc demonstrates a strong solvency position with low debt levels and a relatively stable financial leverage ratio over the years, reflecting a healthy balance between debt and equity in its capital structure.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 2.76 | 3.36 | 4.46 | 5.09 | 4.77 |
One Gas Inc's interest coverage ratio has shown a fluctuating trend over the years. As of December 31, 2020, the interest coverage ratio was 4.77, indicating that the company generated enough operating income to cover its interest expenses nearly 4.77 times. By December 31, 2021, the ratio improved slightly to 5.09, suggesting a stronger ability to meet its interest obligations.
However, there was a decline in the interest coverage ratio to 4.46 by December 31, 2022, which may indicate a slightly reduced capacity to cover interest expenses. This trend continued into 2023, with the interest coverage ratio falling to 3.36, reflecting a potentially heightened risk in the company's ability to meet its interest payments.
Furthermore, by December 31, 2024, the interest coverage ratio declined further to 2.76, signaling a significant decrease in the company's ability to cover interest expenses from its operating income. This downward trajectory in the interest coverage ratio raises concerns about One Gas Inc's financial stability and ability to service its debt obligations comfortably.