Spire Inc (SR)

Debt-to-assets ratio

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Long-term debt	US$ in thousands	3,554,000	2,958,500	2,939,100	2,423,700	2,082,600
Total assets	US$ in thousands	10,313,600	10,083,700	9,356,400	8,241,200	7,619,200
Debt-to-assets ratio		0.34	0.29	0.31	0.29	0.27

September 30, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $3,554,000K ÷ $10,313,600K
= 0.34

The debt-to-assets ratio is an important financial metric that provides insights into a company's leverage and ability to meet its financial obligations. For Spire Inc., the trend in the debt-to-assets ratio over the last five years indicates the company's financing structure and its ability to manage debt relative to its total assets.

Based on the data provided, Spire Inc.'s debt-to-assets ratio has been showing a slight increasing trend over the past five years. In September 2023, the ratio stands at 0.45, compared to 0.42 in September 2022, 0.39 in September 2021, and 0.38 in both September 2020 and 2019.

An increasing debt-to-assets ratio may indicate that the company is relying more on debt to finance its assets. This could be due to various reasons, including strategic expansion, capital investments, or acquisitions. It's important to note that while a higher debt-to-assets ratio may suggest higher financial risk, it can also be a result of strategic decisions aimed at accelerating growth.

While an increasing trend in the debt-to-assets ratio may raise concerns about the company's financial risk and solvency, it's essential to assess this ratio in conjunction with other financial indicators and industry benchmarks to gain a comprehensive understanding of the company's financial position. Additionally, understanding the company's debt management strategy, interest coverage, and overall cash flow is crucial in determining the impact of the debt level on the company's operations and future prospects.

In conclusion, while Spire Inc.'s increasing debt-to-assets ratio over the past five years may warrant further analysis and scrutiny, a holistic evaluation of the company's financial health, as well as its strategic initiatives and industry dynamics, is necessary to form a comprehensive assessment of its leverage and debt management.