One Gas Inc (OGS)

Solvency ratios

	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
Debt-to-assets ratio	0.28	0.25	0.26	0.25	0.34	0.33	0.27	0.27	0.44	0.45	0.50	0.47	0.26	0.27	0.28	0.23	0.23	0.23	0.24	0.23
Debt-to-capital ratio	0.44	0.41	0.41	0.41	0.51	0.50	0.48	0.48	0.61	0.61	0.64	0.64	0.41	0.42	0.42	0.37	0.38	0.38	0.38	0.38
Debt-to-equity ratio	0.78	0.70	0.71	0.71	1.03	0.99	0.93	0.93	1.57	1.59	1.76	1.78	0.71	0.72	0.72	0.59	0.60	0.61	0.61	0.61
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

Solvency ratios provide insights into a company's ability to meet its long-term debt obligations. Based on the data for ONE Gas Inc, the trend of the solvency ratios over the past eight quarters can be analyzed as follows:

1. Debt-to-assets ratio indicates the proportion of the company's assets financed by debt. The decreasing trend from 0.42 in Q4 2022 to 0.39 in Q4 2023 suggests that the company has been able to reduce its reliance on debt to finance its assets, which is a positive indicator of improved solvency.

2. Debt-to-capital ratio measures the extent of a company's capital structure that is financed through debt. The declining trend from 0.56 in Q4 2022 to 0.52 in Q4 2023 indicates a decreasing reliance on debt in ONE Gas Inc's capital structure, enhancing its overall solvency position.

3. Debt-to-equity ratio compares the proportion of debt and equity in financing the company's assets. The decreasing trend from 1.25 in Q4 2022 to 1.10 in Q4 2023 shows a reduction in the level of debt relative to equity. A lower debt-to-equity ratio signifies a stronger solvency position for the company.

4. Financial leverage ratio demonstrates the company's reliance on debt to finance its operations and assets. The decreasing trend from 3.01 in Q4 2022 to 2.81 in Q4 2023 indicates a lower level of financial leverage, implying that the company is better positioned to meet its debt obligations.

Overall, the improving trends in the solvency ratios of ONE Gas Inc suggest enhanced financial stability and a stronger ability to repay its long-term debt, which can be viewed positively by investors and creditors. However, it is essential to continue monitoring these ratios to ensure sustained improvement in the company's solvency position.

Coverage ratios

	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
Interest coverage	3.36	3.42	3.61	3.92	4.46	4.92	5.13	5.19	5.09	5.01	5.01	4.87	4.81	4.72	4.64	4.66	4.66	4.67	4.89	5.06

One Gas Inc's interest coverage ratio has been gradually declining over the past eight quarters. The ratio, which was quite healthy at 5.30 in Q1 2022, has decreased to 3.27 in Q4 2023. This downward trend may indicate potential concerns regarding the company's ability to meet its interest payment obligations with its operating income.

While the interest coverage ratio above 1 indicates that the company is generating enough operating income to cover its interest expenses, the decreasing trend suggests a potential decrease in the company's ability to comfortably meet these obligations over time. A higher interest coverage ratio is generally preferred as it indicates a stronger financial position and lower risk of default.

Investors and analysts should pay close attention to One Gas Inc's future financial performance and monitor any further changes in the interest coverage ratio to assess the company's ability to manage its debt and interest payments effectively.