One Gas Inc (OGS)

Financial leverage ratio

		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	Jun 30, 2019	Mar 31, 2019
Total assets	US$ in thousands	7,770,990	7,432,450	7,335,120	7,420,250	7,776,400	7,321,510	8,411,410	8,467,630	8,402,120	8,133,920	8,183,650	8,679,900	6,028,710	5,763,760	5,681,610	5,674,900	5,708,300	5,533,180	5,446,610	5,524,290
Total stockholders’ equity	US$ in thousands	2,765,880	2,646,750	2,654,830	2,651,480	2,584,430	2,446,270	2,453,600	2,449,390	2,349,530	2,315,100	2,317,270	2,296,600	2,233,310	2,200,020	2,191,990	2,189,010	2,129,390	2,101,880	2,108,460	2,104,780
Financial leverage ratio		2.81	2.81	2.76	2.80	3.01	2.99	3.43	3.46	3.58	3.51	3.53	3.78	2.70	2.62	2.59	2.59	2.68	2.63	2.58	2.62

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 been relatively stable over the past eight quarters, ranging from 2.76 to 3.46. The ratio indicates the level of debt financing relative to equity financing used by the company to support its operations and investments.

A financial leverage ratio of 2.81 to 3.46 suggests that ONE Gas Inc relies more on debt funding compared to equity. The lower the ratio, the less reliant the company is on debt to finance its activities. On the other hand, a higher ratio indicates a higher level of debt in the company's capital structure.

It's important to note that while a higher leverage ratio can enhance returns on equity when operating profitability is high, it also exposes the company to higher financial risk, especially in periods of economic downturn or rising interest rates. Therefore, ONE Gas Inc's management should carefully manage its debt levels to maintain a healthy balance between debt and equity financing.