One Gas Inc (OGS)
Debt-to-equity ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 2,160,400 | 2,661,740 | 3,683,380 | 1,582,430 | 1,286,060 |
| Total stockholders’ equity | US$ in thousands | 2,765,880 | 2,584,430 | 2,349,530 | 2,233,310 | 2,129,390 |
| Debt-to-equity ratio | 0.78 | 1.03 | 1.57 | 0.71 | 0.60 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $2,160,400K ÷ $2,765,880K
= 0.78
The debt-to-equity ratio of ONE Gas Inc has fluctuated over the past five years. In 2023, the ratio decreased to 1.10 from 1.25 in 2022, indicating a reduction in the company's reliance on debt to finance its operations compared to the previous year. However, when compared to 2020 and 2019 when the ratio was 0.90 and 0.85 respectively, the current ratio is still higher.
The ratio was at its peak in 2021 at 1.78, reflecting a significantly higher level of debt relative to equity that year. This could indicate a period of increased borrowing or a reduction in equity during that time.
Overall, while the recent decrease in the debt-to-equity ratio in 2023 suggests a positive trend towards a more balanced capital structure, it is important to monitor future changes in the ratio to assess the company's leverage and financial risk.
Peer comparison
Dec 31, 2023