Southwest Gas Holdings Inc (SWX)
Debt-to-capital ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 3,504,190 | 3,310,040 | 3,058,760 | 2,953,820 | 2,674,950 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $3,504,190K)
= 0.00
The debt-to-capital ratio of Southwest Gas Holdings Inc has been consistent at 0.00 from December 31, 2020, to December 31, 2024. This indicates that the company has not utilized debt significantly in its capital structure during this period, as its total debt is negligible compared to its total capital. A low debt-to-capital ratio suggests that Southwest Gas Holdings Inc relies more on equity financing rather than debt financing for its operations and expansion. This could imply lower financial risk and greater financial stability for the company, as it is not burdened by substantial debt obligations. However, it is essential to consider the context of the industry and specific circumstances of the company when interpreting this ratio to understand the overall financial health and strategic decisions of Southwest Gas Holdings Inc.
Peer comparison
Dec 31, 2024