One Gas Inc (OGS)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 7,770,990 | 7,776,400 | 8,402,120 | 6,028,710 | 5,708,300 |
| Total stockholders’ equity | US$ in thousands | 2,765,880 | 2,584,430 | 2,349,530 | 2,233,310 | 2,129,390 |
| Financial leverage ratio | 2.81 | 3.01 | 3.58 | 2.70 | 2.68 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $7,770,990K ÷ $2,765,880K
= 2.81
The financial leverage ratio of ONE Gas Inc has shown variations over the past five years. The ratio decreased from 3.58 in 2021 to 2.70 in 2020, but then increased to 3.01 in 2022 and further to 2.81 in 2023. This indicates that the company's reliance on debt financing relative to equity has fluctuated, with a higher number suggesting higher financial risk due to increased debt levels.
In 2021, ONE Gas Inc had the highest financial leverage ratio of 3.58, indicating a relatively higher level of debt compared to equity. This may suggest that the company was aggressively leveraging its operations through debt financing that year.
However, the ratios for 2020 and 2019 were lower at 2.70 and 2.68 respectively, signaling lower financial risk during those periods due to a more conservative capital structure.
Overall, despite some fluctuations, ONE Gas Inc has maintained a moderate level of financial leverage over the past five years. It is important for the company to carefully manage its debt levels to ensure financial stability and sustainability in the long term.
Peer comparison
Dec 31, 2023