Spire Inc (SR)

Debt-to-equity 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-equity ratio		1.15	1.22	1.05	1.11	0.96

September 30, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $3,704,400K ÷ $3,232,700K
= 1.15

The debt-to-equity ratio of Spire Inc has fluctuated over the past five years. As of September 30, 2024, the ratio stands at 1.15, indicating that the company has $1.15 in debt for every $1 of equity. This suggests that the company relies more on debt financing compared to equity financing, which can potentially increase financial risk.

Comparing this to the previous years, the ratio was highest in September 2023 at 1.22 and lowest in September 2020 at 0.96. The upward trend from 2020 to 2023 indicates an increase in debt relative to equity during that period, possibly indicating aggressive leveraging or expansion. However, the slight decrease in the ratio from 2023 to 2024 may suggest a slight improvement in the company's debt management or a shift towards more equity financing.

Overall, a debt-to-equity ratio above 1 signifies that the company has more debt than equity, which can indicate higher financial risk and potential difficulties in meeting debt obligations. It is important for stakeholders to closely monitor this ratio to assess the company's financial health and risk profile.