Spire Inc (SR)

Debt-to-capital ratio

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Long-term debt	US$ in thousands	3,704,400	3,554,000	2,958,500	2,939,100	2,423,700
Total stockholders’ equity	US$ in thousands	3,232,700	2,917,300	2,818,500	2,658,200	2,522,300
Debt-to-capital ratio		0.53	0.55	0.51	0.53	0.49

September 30, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $3,704,400K ÷ ($3,704,400K + $3,232,700K)
= 0.53

The debt-to-capital ratio of Spire Inc has fluctuated over the past five years, ranging from 0.49 in 2020 to 0.55 in 2023. The ratio indicates the proportion of debt in the company's capital structure relative to its total capital. A higher ratio suggests a larger reliance on debt financing, while a lower ratio indicates a greater proportion of equity financing.

Spire Inc's debt-to-capital ratio has remained relatively stable around the 0.50 mark, with minor fluctuations seen year over year. This indicates a balanced mix of debt and equity in the company's capital structure. In 2023, there was a slight increase to 0.55, suggesting a higher level of debt relative to capital, which may have been driven by strategic financing decisions or business needs.

Overall, Spire Inc's debt-to-capital ratio suggests a moderate level of debt utilization in its capital structure, indicating a cautious approach towards leverage. It is important for investors and stakeholders to monitor this ratio over time to assess the company's financial risk and leverage position.