Spire Inc (SR)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	2,917,300	2,818,500	2,658,200	2,522,300	2,543,000
Debt-to-capital ratio		0.55	0.51	0.53	0.49	0.45

September 30, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $3,554,000K ÷ ($3,554,000K + $2,917,300K)
= 0.55

The debt-to-capital ratio for Spire Inc. has shown a consistent increase over the past five years, from 0.53 in 2019 to 0.61 in 2023. This ratio indicates the proportion of total debt to the total capital employed by the company, including both debt and equity. The increasing trend in the debt-to-capital ratio suggests that the company has been relying more on debt financing relative to its total capital structure. While a higher debt-to-capital ratio can indicate higher financial risk due to increased leverage, it may also signify the company's ability to access debt financing at favorable terms. Overall, it is important for stakeholders to closely monitor this trend and assess the company's ability to manage its debt levels effectively in the future.