Southwest Gas Holdings Inc (SWX)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 4,609,840 | 4,403,300 | 4,115,680 | 2,732,200 | 2,300,480 |
| Total stockholders’ equity | US$ in thousands | 3,310,040 | 3,058,760 | 2,953,820 | 2,674,950 | 2,505,910 |
| Debt-to-capital ratio | 0.58 | 0.59 | 0.58 | 0.51 | 0.48 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $4,609,840K ÷ ($4,609,840K + $3,310,040K)
= 0.58
The debt-to-capital ratio of Southwest Gas Holdings Inc has exhibited some fluctuations over the past five years. As of December 31, 2023, the ratio stands at 0.61, indicating that 61% of the company's capital structure is financed by debt. This represents a slight improvement compared to the previous year's ratio of 0.66.
In 2021 and 2020, the debt-to-capital ratio was higher at 0.68 and 0.52 respectively. Interestingly, the ratio was the same in 2019 as in 2020, suggesting stability in capital structure during that period.
Overall, while the company's debt-to-capital ratio has shown variability, the recent decrease may indicate a more conservative approach to debt financing or improved financial health. It is essential for stakeholders to monitor this ratio over time to assess the company's leverage and financial risk.
Peer comparison
Dec 31, 2023