Spire Inc (SR)

Financial leverage ratio

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Total assets	US$ in thousands	10,860,700	10,313,600	10,083,700	9,356,400	8,241,200
Total stockholders’ equity	US$ in thousands	3,232,700	2,917,300	2,818,500	2,658,200	2,522,300
Financial leverage ratio		3.36	3.54	3.58	3.52	3.27

September 30, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $10,860,700K ÷ $3,232,700K
= 3.36

The financial leverage ratio of Spire Inc has been fluctuating over the past five years, ranging from 3.27 to 3.58. A higher financial leverage ratio indicates a higher level of debt financing relative to equity, suggesting that the company relies more on debt to finance its operations and investments.

The decreasing trend from 3.58 in 2022 to 3.27 in 2020 suggests a reduction in the company's reliance on debt over this period, possibly due to efforts to deleverage or improved financial performance. However, the ratio increased again in 2023 and 2024, which may indicate a shift back towards higher debt levels relative to equity.

It is important for investors and stakeholders to closely monitor changes in the financial leverage ratio as it can provide insights into the company's capital structure, financial risk, and overall stability. Further analysis and consideration of other financial metrics are recommended to gain a comprehensive understanding of Spire Inc's financial health and risk profile.