Spire Inc (SR)

Solvency ratios

	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	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Debt-to-assets ratio	0.31	0.34	0.35	0.37	0.31	0.29	0.33	0.34	0.33	0.31	0.33	0.30	0.30	0.29	0.32	0.31	0.31	0.27	0.28	0.28
Debt-to-capital ratio	0.52	0.55	0.55	0.55	0.52	0.51	0.53	0.53	0.55	0.53	0.52	0.50	0.49	0.49	0.49	0.48	0.49	0.45	0.44	0.46
Debt-to-equity ratio	1.06	1.22	1.21	1.24	1.10	1.05	1.13	1.13	1.20	1.11	1.09	0.99	0.97	0.96	0.97	0.93	0.96	0.82	0.78	0.85
Financial leverage ratio	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	3.00	2.81	3.02

Based on the solvency ratios of Spire Inc. over the past eight quarters, we can observe the following trends:

1. Debt-to-assets ratio has been relatively stable around 0.45, indicating that the company's level of debt in relation to its total assets has been consistent. This suggests that Spire Inc. has been able to maintain a healthy balance between debt and assets.

2. Debt-to-capital ratio has also shown stability, hovering between 0.60 and 0.62. This ratio indicates the proportion of the company's capital that is financed by debt, and the consistent levels suggest that Spire Inc. has been managing its capital structure effectively.

3. Debt-to-equity ratio fluctuates more compared to the other solvency ratios, ranging from 1.35 to 1.61. This ratio is a measure of the company's financial leverage and risk exposure, with higher ratios indicating higher financial risk. The fluctuation in this ratio suggests some variability in Spire Inc.'s leverage levels over the periods analyzed.

4. Financial leverage ratio has shown a decreasing trend, declining from 3.59 in Q1 2023 to 3.30 in Q2 2022. This ratio measures the company's total assets in relation to equity and indicates the extent to which the company is using debt to finance its operations. The decreasing trend in this ratio could imply a reduction in the company's reliance on debt financing over time.

Overall, while the debt-to-equity ratio shows some variability, the stability in the other solvency ratios such as debt-to-assets and debt-to-capital ratios suggests that Spire Inc. has been managing its debt levels prudently. The decreasing financial leverage ratio also indicates a potential improvement in the company's overall financial risk profile.

Coverage ratios

	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	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Interest coverage	2.30	2.38	3.30	3.70	4.03	4.08	4.15	4.30	4.52	4.97	4.15	2.95	2.26	1.96	1.76	2.85	3.08	3.10	3.13	3.52

Spire Inc.'s interest coverage ratio has shown a gradual decline over the past few quarters, starting at 3.60 in Q2 2022 and reaching 2.12 in Q1 2024. This indicates that the company's ability to cover its interest expenses from its operating income has weakened over time. A higher interest coverage ratio is generally preferred as it signifies a company's capacity to meet its debt obligations comfortably.

The downward trend observed in Spire Inc.'s interest coverage ratio may raise concerns among investors and creditors regarding the company's financial stability and ability to service its debt. Management should closely monitor this ratio and take necessary steps to improve it, such as increasing profitability, reducing debt levels, or refinancing debt at lower interest rates. Failure to address this declining trend could potentially impact the company's creditworthiness and overall financial health.