Spire Inc (SR)

Financial leverage ratio

		Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019
Total assets	US$ in thousands	10,860,700	10,710,900	10,711,400	10,631,700	10,313,600	10,037,500	10,049,000	10,327,700	10,083,700	9,783,900	9,401,300	9,650,500	9,356,400	8,893,300	8,936,800	8,515,600	8,241,200	7,822,600	8,018,000	7,961,000
Total stockholders’ equity	US$ in thousands	3,232,700	3,333,200	3,390,300	3,050,800	2,917,300	2,932,500	2,986,500	2,864,100	2,818,500	2,845,900	2,841,200	2,669,800	2,658,200	2,697,100	2,731,300	2,586,800	2,522,300	2,558,400	2,665,600	2,586,000
Financial leverage ratio		3.36	3.21	3.16	3.48	3.54	3.42	3.36	3.61	3.58	3.44	3.31	3.61	3.52	3.30	3.27	3.29	3.27	3.06	3.01	3.08

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 relatively stable over the past few quarters, ranging between 3.01 and 3.61. The ratio indicates that the company relies moderately on debt to finance its operations and investments, with a trend towards slightly higher leverage in recent quarters.

A ratio above 3 suggests that a significant portion of the company's assets is financed by debt, indicating a moderate level of financial risk. Investors and creditors may view higher leverage as a potential concern, as it increases the company's vulnerability to economic downturns or interest rate fluctuations.

Overall, the financial leverage ratio analysis suggests that while Spire Inc has been managing its debt levels within a certain range, it will be important for the company to monitor its leverage closely to ensure sustainable and prudent financial management practices.