Southwest Gas Holdings Inc (SWX)
Debt-to-equity 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-equity ratio | 1.39 | 1.44 | 1.39 | 1.02 | 0.92 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $4,609,840K ÷ $3,310,040K
= 1.39
From the data provided, Southwest Gas Holdings Inc's debt-to-equity ratio has shown variation over the past five years. The ratio was 1.07 at the end of 2019, indicating that the company had slightly more equity than debt. However, this ratio increased to 1.08 at the end of 2020, suggesting a slight increase in the company's debt compared to equity.
The ratio then experienced a more significant increase to 2.14 at the end of 2021, which indicates a notable increase in the company's debt relative to its equity. This level of debt compared to equity may raise concerns about the company's financial leverage and its ability to meet its debt obligations.
In 2022, the ratio continued to rise to 1.96, albeit showing a slight decrease from the previous year. This suggests that the company's debt levels remained relatively high compared to its equity.
By the end of 2023, the debt-to-equity ratio further decreased to 1.60, indicating a slight improvement in the company's financial position. However, the ratio still suggests that the company relies significantly on debt to finance its operations despite the reduction.
Overall, Southwest Gas Holdings Inc's debt-to-equity ratio has fluctuated over the past five years, with periods of increases and decreases. Investors and stakeholders may want to closely monitor the company's debt management strategies and financial health to assess its ability to manage its debt levels effectively.
Peer comparison
Dec 31, 2023